Article ID Journal Published Year Pages File Type
5061911 Economics Letters 2008 4 Pages PDF
Abstract

In an economy with commodity-pairwise trading posts and transaction costs, commodity money is endogenously determined in general equilibrium. Absent double coincidence of wants, the low-transaction cost commodity (with the narrowest proportional bid/ask price spread) becomes the common medium of exchange.

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Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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Mengerian saleableness and commodity money in a Walrasian trading post example
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