uncertainty forces newcomers to the market to search for an acceptable price which is less than the marginal utility of the good …. Old customers may decide to engage in search after a price increase, if the expected difference in search costs and price …

Money, which provides liquidity, is distinct from debt. The introduction of a bank that issues money in exchange for …

in a search-theoretic model of money where agents have no time preference. The model is similar to the authors' recent … models of search economies with no constraints on money inventories, except that here money is modeled as indivisible and …This paper studies the existence of single-price price equilibrium from a given initial distribution of money holdings …

Money, which provides liquidity services, is distinct from debt. The introduction of a bank that issues money in …

In this paper we study the inefficiencies of the monetary equilibrium and optimal monetary policies in a search economy …. We show that the same frictions that give fiat money a positive value generate an inefficient quantity of goods in each … trade and an inefficient number of trades (or search decisions). The Friedman rule eliminates the first inefficiency and the …

Dispersion of money balances among individuals is the basis for a range of policies but it has been abstracted from in … monetary theory for tractability reasons. In this paper, we fill in this gap by constructing a tractable search model of money … with a non-degenerate distribution of money holdings. We assume search to be directed in the sense that buyers know the …