'As one dies, so dies the other' ? On local complementary currencies as two-sided platforms

Jean-Baptiste Desquilbet () and Etienne Farvaque

Working Papers from HAL

Abstract: Are local complementary currencies doomed? We analyse the conditions underlying the existence of these alternative monetary arrangements from the perspective of the two-sided platform theory. Considering their benefits to depend on the cross-externality generated by the presence of buyers and sellers using the alternative means of payment, we show that the possibility of the sustainability of such arrangements is weak. The result is established in a very general setting and with few restrictions on the parameters. Except in the presence of subsidies, the odds are low for local complementary currencies to survive.

Keywords: Community currency; Complementary currency; Local exchange systems; Two-sided platforms; Means of payment JEL Classification: D42; E41; E42; E59; L11 (search for similar items in EconPapers)
Date: 2022-01-10
New Economics Papers: this item is included in nep-mon and nep-pay
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03518592
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://shs.hal.science/halshs-03518592/document (application/pdf)

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:hal:wpaper:halshs-03518592

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().