Stores, Prices, and Currency Substitution

Other literature type OPEN
Gabriele, Camera; Winkler, Johannes;
  • Publisher: Purdue University

We study endogenous currency substitution in a decentralized trade environment. Sellers maximize profits from sales of imperfectly substitutable goods by posting prices in either one of two currencies. A unique symmetric equilibrium exists where goods are priced only i... View more
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