On the monetary exchange with multiple equilibrium money holdings distributions: An experimental approach

Kazuya Kamiya, Hajime Kobayashi, Tatsuhiro Shichijo and Takashi Shimizu

Journal of Economic Behavior & Organization, 2021, vol. 183, issue C, 206-232

Abstract: In this study, we investigate a search model with divisible fiat money in a laboratory setting. In the model, there are multiple equilibria with various money holdings distributions. The purpose of this study is to investigate the behavior of subjects and the efficiency of endogenously determined money holdings distributions and transaction prices in this environment. We find that such endogenizing enhanced the coordination of subjects through monetary exchange. The subjects endogenously reduced the trade friction of monetary exchanges and chose relatively efficient money holdings distributions and transaction prices.

Keywords: Real indeterminacy; Monetary search; Divisible money; Experiment; Money holdings distributions (search for similar items in EconPapers)
JEL-codes: C91 C92 D51 D83 E40 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S016726812030473X
Full text for ScienceDirect subscribers only

Related works:
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:eee:jeborg:v:183:y:2021:i:c:p:206-232

DOI: 10.1016/j.jebo.2020.12.014

Access Statistics for this article

Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.

More articles in Journal of Economic Behavior & Organization from Elsevier
Bibliographic data for series maintained by Catherine Liu ().