We propose a new role for money as a self-commitment device (in effect, a hostage against opportunism, after Williamson (1983)) in a bilateral exchange relationship such as a strategic alliance. Consider two firms who desire to exchange services over time. When a single unit of one service is...

"We examine the asymptotic distribution of estimated coefficients and endogenous variables in a dynamic self-referential model when agents learn adaptively using a constant gain stochastic gradient algorithm. The model environment can represent a number of economic models, including asset...