Existence and efficiency of general equilibrium with commodity money is investigated in an economy where N commodities are traded at N(N-1)/2 commodity-pairwise trading posts. Trade is a resource-using activity recovering transaction costs through the spread between bid (wholesale) and ask...

Jevons's double coincidence of wants condition is derived as the result of household level transaction costs in general equilibrium where N commodities are traded at (1/2)N(N-1) commodity-pairwise trading posts. Each household experiences a set-up cost on entering an additional trading post....