Noncash payment methods in a cashless economy
نویسندگان
چکیده
Several non-cash record-keeping systems are formulated in a randommatching model. The crucial informational friction is that a seller’s endowment, which may be a random variable, and the transfer of goods to a buyer can only be observed by the traders in a pairwise meeting. With this friction monitoring of the payment is distinguished from monitoring of the complete transaction. For each implementation notion we apply from monetary matching models, we show that the noncash systems can implement allocations implementable by the cash system, and for some parameters the noncash system can implement better allocations not implementable by the cash system. JEL Classification Number: E40
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