Equilibrium Price Dispersion in a Matching Model with Divisible Money

The main purpose of this paper is to show that, for any given parameter values, an equilibrium with dispersed prices (two-price equilibrium) exists in a simple matching model with divisible money presented by Green and Zhou (1998).We also show that our two-price equilibrium is unique in certain environments. Moreover, the welfare effect of price dispersion is analysed.

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Year of publication:	2002
Authors:	Kamiya, K. ; Sato, T.
Institutions:	Tilburg University, Center for Economic Research
Subject:	equilibrium analysis \| prices \| money

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Extent:	application/pdf
Series:	Discussion Paper.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series CentER Discussion Paper Number 2002-118
Classification:	D51 - Exchange and Production Economies ; E40 - Money and Interest Rates. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://ebvufind01.dmz1.zbw.eu/10011091633