This paper examines how a platform's ability to create its own money affects its pricing decisions, the search and matching dynamics between buyers and sellers, and overall economic welfare. We show that by pricing in its own currency, the platform can extract seignorage from buyers while imposing higher fees on sellers. In contrast, the legacy market uses fiat money, cannot recoup seignorage from buyers and thus operates at a competitive disadvantage, even when inflation costs are less salient

Tag-uri: Inflatie