Production in Advance in Monetary Economies: Random Matching and Bargaining
2010/11/16
研討會日期 : 2010-11-16
時間 : 14:30
主講人 : Professor Ching-Jen Sun
地點 : Conference Room B110
演講者簡介 : Ching-Jen Sun got his Ph.D. in Economics from Ohio State University in 2008. He is currently serving as Lecturer of School of Accounting, Economics and Finance at Deakin University. His research field is in industrial organization, contract theory and game theory.
演講摘要 : Search-theoretic models of money assume that sellers can produce any amount of goods on demand. However, a majority of goods are produced in advance by sellers. In this paper we propose a new model of monetary search in which sellers produce partially durable goods in advance and then strive to find customers. This has two implications. First, sellers have the option to produce for themselves (home production) or for customers in exchange for money (market production). Second, both sides of the market take a risk: buyers invest in money which depreciates because of inflation, sellers produce perishable output in advance and none is sure to trade. We obtain three types of equilibria. Type I Equilibrium is a non-monetary pure-strategy equilibrium in which the seller produces only for himself and nothing for the market. Type II Equilibrium is a pure-strategy monetary equilibrium in which the seller produces, sells a fraction and keeps the leftover for himself. Type III Equilibrium has two parts, both of which are mixed-strategy monetary equilibria. In the first one buyers bring a unique amount of money and sellers randomize between two levels of output. In the second, the buyer brings multiple amounts of money with positive probabilities and likewise the seller brings multiple amounts of output with positive probabilities. Thus, with some probability this equilibrium gives rise to the buyer bringing more money than he spends.
