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This note attempts to provide a formulaic definition of money and discuss the distinction between "medium of exchange" and "means of payment." The former refers to the set of assets in an economy that people regularly exchange for goods and services (a concept of "what"), while the latter is a method that facilitates delivery of money from one to another (a notion of "how"). It suggests that money should be exclusively defined as "medium of exchange," rather than "means of payment." With such a distinction established, one can uniformly explain why currency, demand deposits and smart cards are money (because they are a medium of exchange), and why checks, money orders, or debit and credit cards are not money (because they are only a means of payment but not a medium of exchange).

This note discusses the classifications of general symmetric and anti-diagonally symmetric 2×2 games, illustrated with business-related examples. It also shows how 2×2 games can be used to explain and interpret business strategies such as "top dog," "puppy dog," "fat cat" and "lean-and-hungry look" (Fudenberg and Tirole, 1984). A strategic move basically changes a prisoner's dilemma game, coordination game or chicken game into one with a unique Nash equilibrium that favors the strategic player.

AbstractThis article develops a dynamic model to investigate renewable resource markets under different property rights. We find that different property rights regimes in renewable resource markets yield very different equilibria. Under private property rights, the valve point increases with the natural growth rate, productivity, number of firms, and marginal costs. Under common property rights, "the tragedy of the commons" inescapably occurs. This study suggests how to avoid ecological disaster by implementing a set of public policies.