The Theory of Money and Financial Institutions: A Summary of a Game Theoretic Approach

Martin Shubik

No 1572, Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University

Abstract: A game theoretic approach to the theory of money and financial institution is given utilizing both the strategic and coalitional forms for describing the economy. The economy is first modeled as a strategic market game, then the strategic form is used to calculate several cooperative forms that differ from each other in their utilization of money and credit and their treatment of threats. It is shown that there are natural upper and lower bounds to the monetary needs of an economy, but even in the extreme structures the concept of "enough money" can be defined usefully, and for large economies the games obtained from the lower and upper bounds have cores that approach the same limit that is an efficient price system. The role of disequilibrium is then discussed.

Keywords: Money; Prices; Core; Threat; Market game; Strategic market game (search for similar items in EconPapers)
JEL-codes: C71 C72 E40 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2006-07
New Economics Papers: this item is included in nep-cba, nep-fmk, nep-gth, nep-ict, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://cowles.yale.edu/sites/default/files/files/pub/d15/d1572.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
Journal Article: The Theory of Money and Financial Institutions: A Summary of a Game Theoretic Approach (2007)
Working Paper: The Theory of Money and Financial Institutions: A Summary of a Game Theoretic Approach (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cwl:cwldpp:1572

Ordering information: This working paper can be ordered from
Cowles Foundation, Yale University, Box 208281, New Haven, CT 06520-8281 USA
The price is None.

Access Statistics for this paper

More papers in Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University Yale University, Box 208281, New Haven, CT 06520-8281 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Brittany Ladd ().