Subject: Barter, City, Exchange system, Market center, Merchant, Redistribution system, Transaction cost
jel: jel:E41 | jel:E40 | jel:R10 | jel:N10
The main goal of this essay is to analyze the emergence of a barter economy, and the rise of centralized merchants and a barter redistribution system out of a primitive barter system. The environment is a spatial general equilibrium model where exchange is costly. Since...