A strategic market game with transactions costs (Q1067961)

Transactions costs in terms of the physical consumption of goods are introduced into a strategic market game model of exchange with complete markets. The existence of noncooperative equilibria is established. The possibility that the activity of markets will depend upon the physical properties of a commodity which might serve as a money are considered. Trade in m commodities with a money calls for m-1 markets as contrasted with m(m-1)/2.