Multi-sided pre-play communication by burning money
Article Abstract:
"Burning money", or sending on communications before a game is played, is used in determining game equilibria. The model selects an equilibria which survives the repeated elimination of weak strategies in a game wherein only one of the players can send a message. The signalling player does not have to spend to achieve this result. However, the approach is not applicable to two-player games wherein both players can signal and games with more than two players. In these cases, signalling players could burn large amounts of money.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1996
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The value of money in an overlapping generations model: a note
Article Abstract:
An analysis of the value of money is presented. The analysis applies an overlapping generations model to evaluate money value. The model assumes N perishable commodities, absent uncertainty, one agent per generation and a single asset which is defined as money. It is shown that sufficient conditions can be established where a continuum of rational expectations equilibria exists.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1993
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Habit persistence in overlapping generations economies under pure exchange
Article Abstract:
Habit persistence preferences can create a role for government currency in an economy where there was previously no role for such currency. As a result of increased saving generated by habit persistence, governments can float higher deficit levels. It also results in the savings function to decrease in the rate of lower value interest for relative risk aversion.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1998
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- Abstracts: The integrability problem of asset prices. Dynamic allocation in an altruistic overlapping generations economy
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