English

Study of a Market Model with Conservative Exchanges on Complex Networks

Physics and Society 2015-06-12 v2 Social and Information Networks General Finance

Abstract

Many models of market dynamics make use of the idea of conservative wealth exchanges among economic agents. A few years ago an exchange model using extremal dynamics was developed and a very interesting result was obtained: a self-generated minimum wealth or poverty line. On the other hand, the wealth distribution exhibited an exponential shape as a function of the square of the wealth. These results have been obtained both considering exchanges between nearest neighbors or in a mean field scheme. In the present paper we study the effect of distributing the agents on a complex network. We have considered archetypical complex networks: Erd\"{o}s-R\'enyi random networks and scale-free networks. The presence of a poverty line with finite wealth is preserved but spatial correlations are important, particularly between the degree of the node and the wealth. We present a detailed study of the correlations, as well as the changes in the Gini coefficient, that measures the inequality, as a function of the type and average degree of the considered networks.

Keywords

Cite

@article{arxiv.1212.1061,
  title  = {Study of a Market Model with Conservative Exchanges on Complex Networks},
  author = {L. A. Braunstein and P. A. Macri and J. R. Iglesias},
  journal= {arXiv preprint arXiv:1212.1061},
  year   = {2015}
}

Comments

arXiv admin note: substantial text overlap with arXiv:1007.0461

R2 v1 2026-06-21T22:49:10.733Z