SIMULATING A MULTIPRODUCT BARTER EXCHANGE ECONOMY

DANIEL LEVY, MARK BERGEN

Research output: Contribution to journalArticlepeer-review

5 Scopus citations

Abstract

We describe a multiproduct barter trading experiment in which students exchange real goods in an open market based on their own personal preference. The experiment is designed for simulating a pure exchange market in order to demonstrate the role of money and its functions in real economies by showing the limitations and inefficiencies of the traditional barter economy. In addition, the simulation is very effective in highlighting some of the key features that an object that serves as money needs to possess in order to function as an efficient medium of exchange, unit of account, and store of value.

Original languageEnglish (US)
Pages (from-to)314-321
Number of pages8
JournalEconomic Inquiry
Volume31
Issue number2
DOIs
StatePublished - Apr 1993

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