Journal ArticleDOI
The transactions trust demand for money: The money rate of interest in a one period exchange economy
TLDR
In this article, an exchange economy using gold as a means of payment is considered where it is possible to borrow gold in a money market and a positive money rate of interest is encountered as the shadow price of the capacity constraint in an economy without enough gold.Abstract:
An exchange economy using gold as a means of payment is considered where it is possible to borrow gold in a money market. A positive money rate of interest is encountered as the shadow price of the capacity constraint in an economy without enough gold. The meaning of enough gold and the role of the default penalty are noted in the determination of the interest rate.read more
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Book
The Theory of Money and Financial Institutions
TL;DR: The second volume in a three-volume exposition of Martin Shubik's vision of "mathematical institutional economics" is as discussed by the authors, where the authors develop a process-oriented theory of money and financial institutions that reconciles micro- and macroeconomics, using as a prime tool the theory of games in strategic and extensive form.
Journal ArticleDOI
A strategic market game with a mutual bank with fractional reserves and redemption in gold
TL;DR: In this paper, the role and function of a mutual bank with variable fractional reserves, redemption in gold, and endogenous interest rate formation is analyzed using the strategic market game approach.
Posted ContentDOI
Interdisciplinary Trust Meta-Analysis
TL;DR: A meta-analysis of approximately 800 trust articles written from 1966 to 2006 in A+, A, and B journals are structured and analyzed.
Journal ArticleDOI
A survey of strategic market games
TL;DR: The Strategic Market Game (SMG) as discussed by the authors is the general equilibrium mecha- nism of strategic reallocation of resources, which was suggested by Shapley and Shubik in a series of papers.
Journal ArticleDOI
A strategic market game of a finite exchange economy with a mutual bank
Martin Shubik,Jingang Zhao +1 more
TL;DR: In this article, the authors introduce a strategic market game for an exchange economy not having enough commodity money, and show that efficient trade can be achieved in the limiting economy by expanding the money supply through the use of fractional reserves, where the commodity money is demonetized and used for reserves.
References
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Journal ArticleDOI
A Theory of Money and Financial Institutions. Part 28. The Noncooperative Equilibria of a Closed Trading Economy with Market Supply and Bidding Strategies
Pradeep Dubey,Martin Shubik +1 more
TL;DR: Shubik and Shubik as discussed by the authors examined a noncooperative equilibrium solution to one of the alternative models and to contrasting this with the non-cooperative solution to the original model.
Journal ArticleDOI
The optimal bankruptcy rule in a trading economy using fiat money
Martin Shubik,Charles Wilson +1 more
TL;DR: In this paper, an outside bank, and borrowing are considered explicitly and the meaning of an optimal bankruptcy rule are considered, and the authors deal primarily with problems in modelling and interpretation of a monetary economy.
Journal ArticleDOI
A strategic market game with complete markets
TL;DR: In this paper, an exchange economy is modeled as a strategic market game with all pairwise markets available, and the existence of noncooperative equilibria is proved, and it is shown that if resources are distributed in a skewed manner, in equilibrium prices may not satisfy the no arbitrage condition.
Journal ArticleDOI
The non-cooperative equilibria of a trading economy with complete markets and consistent prices☆
Siddhartha Sahi,Shuntian Yao +1 more
TL;DR: In this article, an exchange economy with complete markets is described and a general theorem for the existence of active Nash equilibria is proved, and it is further shown that under replication of traders, these equilibrium approaches competitive equilibrium of the economy.
Posted Content
Default and Efficiency in a General Equilibrium Model with Incomplete Markets
TL;DR: In this paper, the authors extend the standard model of general equilibrium with incomplete markets (GEI) to allow for default, and they show that default is reasonably modeled as an equilibrium phenomenon.