Trade with assignats or landbank money: Equilibria in a finite-person strategic market game

Abstract

We consider a simplified economy with a finite number of consumers in which a fixed quantity of a perishable commodity becomes available in each of a denumerably infinite number of time periods. There is an initial distribution of wealth. The consumers bid for the commodity every period and the commodity is distributed in proportion to the bids. The total bid is then redistributed among the consumers in proportion to their remaining wealth. We investigate the existence and uniqueness of equilibria in the economy.