•   •   •   •

Download the Paper (138 K, PDF file) - January 1, 2008 Tell a colleague about it. Printing Tips: Select 'print as image' in the Acrobat print dialog if you have trouble printing.

ABSTRACT:
In an economy with commodity-pairwise trading posts and transaction costs, commodity money is endogenously determined in general equilibrium. Absent double coincidence of wants, the low-transaction cost commodity (with the narrowest proportional bid/ask price spread) becomes the common medium of exchange.

SUGGESTED CITATION:
Ross M. Starr, "Mengerian Saleableness and Commodity Money in a Walrasian Trading Post Example" (January 1, 2008). Department of Economics, UCSD. Paper 2008-02.
http://repositories.cdlib.org/ucsdecon/2008-02