Milton Friedman, the Demand for Money and the ECB’s Monetary-Policy Strategy

Clive Fraser ()

No 12/06, Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester

Abstract: I model a single-club economy with heterogeneous consumers as an aggregative game. I give a sufficient condition, normality of demand for the club good in full income, for the existence and uniqueness of a Nash equilbrium by the Cornes-Hartley (2007) method. Then, confining attention to club quality functions that are homogeneous in the investment in the club facility and the aggregate usage of the club, I examine when the sufficient condition is satisfied. I show that, under common assumptions on the utility function, this occurs for all positive degrees of homogeneity.

Keywords: Nash equilibrium; heterogeneous clubs; aggregative game; homogeneous function; existence; uniqueness (search for similar items in EconPapers)
JEL-codes: C7 D1 D5 H4 (search for similar items in EconPapers)
Date: 2012-03
New Economics Papers: this item is included in nep-cba, nep-hpe and nep-mon
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