General equilibrium theory in economics defines the relative prices for goods and services, but does not fix the absolute values of prices. We present a theory of money in which the value of money is a time dependent "strategic variable," to be chosen by the individual agents. The idea is...

The basic two-noncooperative-equilibrium-point model of Diamond and Dybvig is considered along with the work of Morris and Shin utilizing the possibility of outside noise to select a unique equilibrium point. Both of these approaches are essentially nondynamic. We add an explicit replicator...

Three models of a monetary economy are considered, in order to show the effects of a gold demonetization: the first with a gold money, the second with demonetized gold but no central bank, and the third with demonetized gold, but with a central bank. The distinctions between ownership and...

This article is connected with the conceptual foundations of the theory of economic competition, as well as with the respective effect of the concept of the new solution, derived from the mathematical theory of games. We will discuss the three main principle of distribution in the economic...

This book presents the most important published articles of Martin Shubik who has made a path-breaking contribution to game theory and political economy. The volume shows how game theory can be used to explore fundamental problems in economics, political science and operations research.

We define and examine three minimal market games (sell-all, buy-sell, and double auction) in the laboratory relative to the predictions of theory. These closed exchange economies have some cash to facilitate transactions, and include feedback. The experiment reveals that (1) the competitive...