Title

A Note on Enough Money in a Strategic Market Game with Complete or Fewer Markets

Authors

Martin Shubik

Document Type

Discussion Paper

Publication Date

11-1-1984

CFDP Number

730

CFDP Pages

10

Abstract

This paper discusses the notion of “enough money” in strategic market games. In an economy with one money, m-1 markets and no credit, in order to be able to achieve efficient trade there must be “enough money” held by all traders. In essence “enough money” means that the noncooperative equilibrium solutions to a strategic market game is interior, in other words it is not considered by lack of liquidity. For simplicity two specific market mechanisms are described to illustrate the relationship between market structure and liquidity.

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