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The theory of money typically ignores the fact that the mode of market interaction arises endogenously, and simply … understanding the conditions that lend themselves to the development of money as a mode of exchange. To study this, we develop a … theory of money such that the market structure is endogenized. …
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This paper combines two strands of the experimental sunspot literature. It extends the rare literature that focuses experimentally on the coordination problems caused by sunspot variables. It also extends the literature that focuses on coordination games that have a payoff-dominant and a...
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A sunspot variable is any random variable that is not related to fundamental factors of the economy but a potential coordination device. The coordination power of sunspots has been analysed in theory and in experiments. However, some have discussed whether sunspots, e.g., public announcements...
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