Endogenous Matching and Money with Random Consumption Preferences
- 4 June 2019
- journal article
- research article
- Published by Walter de Gruyter GmbH in The B.E. Journal of Theoretical Economics
- Vol. 19 (2)
- https://doi.org/10.1515/bejte-2017-0170
Abstract
Current money matching models employ either random matching or endogenous matching processes, both of which oversimplify the problem. We maintain that, although most economic interactions are intentional, some randomness remains. We offer an endogenous matching model of money with random consumption preferences. Our model preserves the intentionality of economic interactions while leaving scope for chance. We identify the conditions for potential monetary and nonmonetary equilibria and compare them to those of other endogenous matching and random matching models.Keywords
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