This thesis includes three essays on monetary theory analyzing monetized trading arrangements in three separate environments: (1) transient economy, (2) economy with two competing imperfect record-keeping technologies, and (3) economy where agents are subject to productivity shocks. In Essay...

In a random-matching monetary economy, efficient and inefficient sellers choose between home or market production. Since inefficient sellers bargain up their prices, two equilibria may exist-with high or low market participation-depending on extent of heterogeneity and frictions. In equilibrium,...

In this article, we adopt a variant of the trust game by Berg, Dickhaut, and McCabe (1995) and the dictator game by Cox (2004) to determine if income inequality can activate in-group favoritism and, if so, whether such a bias is strong enough to survive the removal of income inequality. We find...

We report the results of an experiment that demonstrates that market experience is not necessary to eliminate bubbles in the type of asset markets studied in <link rid="b1">Smith et al. (1988) </link>. We introduce a pre-market phase in which subjects experience a dividend flow themselves by literally observing and...

Coasian reasoning predicts that the conditions under which parties may terminate a partnership will affect bargaining between partners, but not the durability of partnerships. This paper endeavors to test both predictions in an experimental setting that allows agents to form and end partnerships...