Monetary trading: An Optimal Exchange System

We show that monetary trading is simple, self-enforcing, symmetric, and irreducible in a natural framework. Furthermore, we show that the utility for each economic agent is at least as big under the monetary system as under any other simple, self-enforcing, symmetric, and irreducible trading system of the same complexity. Thus, we rationalize the monetary nature of real-world trade as being an efficient way to achieve those properties.

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Year of publication:	2003-09-05
Authors:	Carmona, Guilherme
Institutions:	EconWPA
Subject:	Monetary Trading \| Social Institutions

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Extent:	application/pdf
Series:	Game Theory and Information.
Type of publication:	Book / Working Paper
Notes:	Type of Document - PDF; prepared on XP; to print on HP/PostScript/Franciscan monk; pages: 48 ; figures: included/request from author/draw your own 48 pages
Classification:	C73 - Stochastic and Dynamic Games ; E40 - Money and Interest Rates. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005062367