Generalized Search-Theoretic Models of Monetary Exchange

We present new results on existence, the number of equilibria, and welfare for search-theoretic models of money that extend the literature in several ways. For example, we provide results for general bargaining parameters while previous papers consider only special cases. Also, we present two version of the model: in one agents holding money cannot produce, in the other they can. The former model has been used in essentially all the previous literature, although the latter seems more natural for some purposes, and avoids several undesirable implications. Since very little is known about this version, we analyze it in detail.