Mengerian saleableness and commodity money in a Walrasian trading post example

Ross M. Starr

Economics Letters, 2008, vol. 100, issue 1, pages 35-38

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.

Downloads: (external link)
http://www.sciencedi ... a8ed9c8e62bac56f7068
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Access Statistics for this article

Economics Letters is edited by E. Maskin

More articles in Economics Letters from Elsevier
Series data maintained by Heidi Boesdal ().