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Equilibrium Selection in Monetary Search Models: An Experimental Approach

Author

Listed:
  • Kazuya Kamiya

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

  • Hajime Kobayashi

    (Kansai University, Japan)

  • Tatsuhiro Shichijo

    (Osaka Prefecture University, Japan)

  • Takashi Shimizu

    (Kobe University, Japan)

Abstract

It is known that there exists a multiplicity (indeterminacy) of stationary equilibria in search models with divisible money. This paper investigate whether some specific stationary equilibrium is selected through economic experiments. We observe that in some treatments there is a tendency to converge to the most efficient equilibrium. However, as a whole, there remains some degree of indeterminacy.

Suggested Citation

  • Kazuya Kamiya & Hajime Kobayashi & Tatsuhiro Shichijo & Takashi Shimizu, 2017. "Equilibrium Selection in Monetary Search Models: An Experimental Approach," Discussion Paper Series DP2017-03, Research Institute for Economics & Business Administration, Kobe University.
    • Handle: RePEc:kob:dpaper:dp2017-03
    as

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    File URL: https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2017-03.pdf
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    References listed on IDEAS

    as
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    3. Green, Edward J. & Zhou, Ruilin, 1998. "A Rudimentary Random-Matching Model with Divisible Money and Prices," Journal of Economic Theory, Elsevier, vol. 81(2), pages 252-271, August.
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    More about this item

    Keywords

    Real indeterminacy; Random matching; Money; Experiment; Equilibrium selection;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General

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