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Money and cooperation in small communities

Author

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  • So Kubota

    (Faculty of Political Science and Economics, Waseda University, 1-6-1 Nishiwaseda Shinjuku-ku, Tokyo 169-8050, Japan.)

Abstract

In this note, I investigate the circulation of money in small communities. I build a two-player repeated gift-giving game and then show that players can sustain coopera- tion by using money. An ecient outcome is obtained when players are able to hold multiple units of currency.

Suggested Citation

  • So Kubota, 2021. "Money and cooperation in small communities," Working Papers 2118, Waseda University, Faculty of Political Science and Economics.
    • Handle: RePEc:wap:wpaper:2118
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    primitive money; repeated game.;

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative

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