Abstract
We study the Lagos and Wright (2005) model of monetary exchange in the laboratory.
With a finite population of sufficiently patient agents, this model has a unique
monetary equilibrium and a continuum of non-monetary gift exchange equilibria, some
of which Pareto dominate the monetary equilibrium. We find that subjects avoid the
gift-exchange equilibria in favor of the monetary equilibrium. We also study versions of
the model without money where all equilibria involve non-monetary gift-exchange. We
find that welfare is higher in the model with money than without money, suggesting
that money plays a role as an efficiency enhancing coordination device.

发表于American Economic Review2014年第6期。本版属于最新版的working paper。