Abstract
We apply a commodity-money refinement to matching models in which people meet in pairs and buyers make take-it-or-leave-it offers to sellers. The refinement is applied by attaching a utility value to nominal money and letting that value approach zero. An equilibrium satisfies the refinement if it is such a limit. We show that the refinement eliminates a class of non-full-support steady states.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 246-258 |
| Number of pages | 13 |
| Journal | Journal of Economic Theory |
| Volume | 117 |
| Issue number | 2 |
| DOIs | |
| State | Published - Aug 2004 |
All Science Journal Classification (ASJC) codes
- Economics and Econometrics
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