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...

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,...