A Theory of Money and Financial Institutions. Part III. The Missing Degree of Freedom: Commodity Money and Oligopoly in a General Equilibrium Model,
Abstract
It is suggested that an extra degree of freedom is needed to construct a symmetric noncooperative price game in a market with n monopolists trading in n goods. This calls for the introduction of an n+1 good which can be interpreted as a commodity money. The quantity game is examined. Necessary conditions are shown for the replicated game to have its noncooperative equilibria approach the competitive equilibria of the replicated market. A shadow price is discussed in relation to monetary capacity constraints.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 17, 1971
- Accession Number
- AD0735969
Entities
People
- Martin Shubik
Organizations
- Yale University