Title

Equilibrium Selection in Monetary Search Models: An Experimental Approach

Abstract

It is known that there exists a multiplicity (indeterminacy) of stationary equilibria in search models with divisible money. This paper investigate whether some specific stationary equilibrium is selected through economic experiments. We observe that in some treatments there is a tendency to converge to the most efficient equilibrium. However, as a whole, there remains some degree of indeterminacy.

Keywords

Real Indeterminacy, Random Matching, Money, Experiment, Equilibrium Selection.


Inquiries

Kazuya KAMIYA
Research Institute for Economics and Business Administration
Kobe University
Rokkodai-cho, Nada-ku, Kobe
657-8501 Japan
Phone: +81-78-803-7036
FAX: +81-78-803-7059


Hajime KOBAYASHI
Faculty of Economics, Kansai University

Tatsuhiro SHICHIJO
Faculty of Economics, Osaka Prefecture University

Takashi SHIMIZU
Faculty of Economics, Kobe University