|
EconStor >
Northwestern University >
Kellogg School of Management - Center for Mathematical Studies in Economics and Management Science, Northwestern University >
Discussion Papers, Kellogg School of Management, Northwestern University >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/31189
|
| | |
| Title: | | Wealth as a signal in the search model of money  |
| Authors: | | Okumura, Tsunao |
| Issue Date: | | 2005 |
| Series/Report no.: | | Discussion paper // Center for Mathematical Studies in Economics and Management Science 1401 |
| Abstract: | | This paper investigates the possibility that wealth (holdings of money) serves as a signal of ability to produce high quality products for agents who cannot directly observe the quality of the products. A producer’s wealth may advertise past success in selling products to agents who knew the producer’s ability and thus signal its ability. This analysis shows that such signaling effects may arise in equilibrium and may lead to more unequal distributions of wealth and lower welfare than would otherwise arise. |
| Subjects: | | Random matching Money holdings Signaling Distribution of wealth Welfare Divisible money Product quality |
| JEL: | | E40 D82 D83 D31 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Discussion Papers, Kellogg School of Management, Northwestern University
|
| Files in This Item:
| |
|
| No. of Downloads:
| |
| last Month |
last 3 Month |
total |
|
|
|
|
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/31189
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|