New leads in speculative behavior

A. Kindler, Sacha Bourgeois-Gironde, G. Lefebvre and S. Solomon

Physica A: Statistical Mechanics and its Applications, 2017, vol. 467, issue C, 365-379

Abstract: The Kiyotaki and Wright (1989) (henceforth KW) model of money emergence as a medium of exchange has been studied from various perspectives in recent papers. In the present work we propose a minimalistic model for the behavior of agents in the KW framework, which may either reproduce the theoretical predictions of Kiyotaki and Wright (1989) on the emerging Nash equilibria, or (less closely) the empirical results of Brown (1996), Duffy and Ochs (1999) and our own, introduced in a first part of the present paper. The main import is the systematic computer scanning of speculative monetary equilibria under drastic bounded rationality of agents, based on behavior previously observed in the lab.

Keywords: Agent-based model; Kiyotaki & Wright; Speculation; Bounded rationality (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:467:y:2017:i:c:p:365-379

DOI: 10.1016/j.physa.2016.10.028

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