The Kiyotaki and Wright (1989) (henceforth KW) model of money emergence as a medium of exchange has been studied from various perspectives in recent papers. In the present work we propose a minimalistic model for the behavior of agents in the KW framework, which may either reproduce the theoretical predictions of Kiyotaki and Wright (1989) on the emerging Nash equilibria, or (less closely) the empirical results of Brown (1996), Duffy and Ochs (1999) and our own, introduced in a first part of the present paper. The main import is the systematic computer scanning of speculative monetary equilibria under drastic bounded rationality of agents, based on behavior previously observed in the lab.
|Number of pages||15|
|Journal||Physica A: Statistical Mechanics and its Applications|
|State||Published - 1 Feb 2017|
Bibliographical notePublisher Copyright:
© 2016 Elsevier B.V.
- Agent-based model
- Bounded rationality
- Kiyotaki & Wright
ASJC Scopus subject areas
- Statistical and Nonlinear Physics
- Statistics and Probability