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Simulating a Multiproduct Barter Exchange Economy

Daniel Levy () and Mark Bergen
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Mark Bergen: University of Minnesota

Experimental from University Library of Munich, Germany

Abstract: We describe a multiproduct barter trading experiment in which students exchange real goods in an open market based on their own personal preference. The experiment is designed for simulating a pure exchange market in order to demonstrate the role of money and its functions in real economies by showing the limitations and inefficiencies of the traditional barter economy. In addition, the simulation is very effective in highlighting some of the key features that an object that serves as money needs to possess in order to function as an efficient medium of exchange, unit of account, and store of value.

Keywords: Roles of Money; Functions of Money; Barter; Exchange Economy; Medium of Exchange; Store of Value; Unit of Account; Experiment; Efficient and Inefficient Medium of Exchange; Types of Money; Fiat Money; Commodity Money; Features of Money; Homogeneity; Divisibility; Durability; Storability; Portability; Scarcity; Efficiency versus Equity; Information Cost (search for similar items in EconPapers)
JEL-codes: A22 C90 C91 C92 E40 E41 E42 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-exp and nep-mac
Date: 2005-05-15
Note: Type of Document - pdf; pages: 18
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Journal Article: Simulating a Multiproduct Barter Exchange Economy (1993)
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