This paper studies how a platform's ability to create its own money affects its pricing decisions, the search and matching dynamics, and social welfare. By issuing its currency, the platform extracts seignorage. A legacy market using fiat money cannot recoup seignorage and operates at a competitive disadvantage, even when inflation costs are less salient than fees. Equilibrium is socially inefficient both in terms of resulting seller/buyer ratios and the number of traders on the platform. When

Tag-uri: Inflatie