A commodity-money refinement in matching models

  title={A commodity-money refinement in matching models},
  author={Neil Wallace and Tao Zhu},
  journal={J. Economic Theory},
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. J. of Econ. Lit. Classification E40. Running title: Commodity-Money Refinement 

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