Convergence to Monetary Equilibrium in Search Model

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F14%3A00076575" target="_blank" >RIV/00216224:14560/14:00076575 - isvavai.cz</a>
Result on the web
<a href="http://www.mme2014.upol.cz/downloads/MME_2014_Proceedings.pdf" target="_blank" >http://www.mme2014.upol.cz/downloads/MME_2014_Proceedings.pdf</a>
DOI - Digital Object Identifier
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Result language
angličtina
Original language name
Convergence to Monetary Equilibrium in Search Model
Original language description
Monetary equilibria are welfare superior comparing to barter equilibria in models with decentralized trade, such as search models. However, monetary equilibrium arises only if agents share the belief that money is accepted by other agents. The paper explores the question whether agents can spontaneously coordinate on such a belief in case of at money. Formation of monetary equilibrium is studied in the monetary search model, which is similar to Kiyotaki-Wright model. The model is characterized by decentralized trading where agents have to decide whether to accept at money or not. Each agent has some belief about money acceptability and chooses optimal action with respect to this belief. The belief is updated after each trade. To allow for non-equilibrium dynamics the model is solved by means of agent based simulation. The paper shows what conditions have to be met in order for monetary equilibrium to arise.
Czech name
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Czech description
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Publication year
2014
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection
32nd International Conference Mathematical Methods in Economics Conference Proceedings
ISBN
9788024442099
ISSN
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e-ISSN
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Number of pages
6
Pages from-to
956
Publisher name
Palacký University
Place of publication
Olomouc
Event location
Olomouc
Event date
Jan 1, 2014
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
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