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We consider a financial network represented at any time instance by a random liability graph which evolves over time. The agents connect through credit instruments borrowed from each other or through direct lending, and these create the…

Risk Management · Quantitative Finance 2022-12-23 Indrajit Saha , Veeraruna Kavitha

We present an agent-based model of economic exchange in a society composed of two groups, representing two social groups and with different internal protection rules for the poor agents. The goal is to address the emerging wealth…

Physics and Society · Physics 2025-05-01 Thiago Dias , Sebastián Gonçalves

We study learning dynamics in distributed production economies such as blockchain mining, peer-to-peer file sharing and crowdsourcing. These economies can be modelled as multi-product Cournot competitions or all-pay auctions (Tullock…

Computer Science and Game Theory · Computer Science 2021-03-18 Yun Kuen Cheung , Stefanos Leonardos , Georgios Piliouras

We investigate the wealth evolution in a system of agents that exchange wealth through a disordered network in presence of an additive stochastic Gaussian noise. We show that the resulting wealth distribution is shaped by the degree…

Statistical Mechanics · Physics 2008-12-02 T. Di Matteo , T. Aste , S. T. Hyde

A simple generative model of a foraging society generates significant wealth inequalities from identical agents on an equal opportunity landscape. These inequalities arise in both equilibrium and non-equilibrium regimes with some societies…

Physics and Society · Physics 2021-11-01 John C. Stevenson

We provide an exact solution to the ideal-gas-like models studied in econophysics to understand the microscopic origin of Pareto-law. In these class of models the key ingredient necessary for having a self-organized scale-free steady-state…

Physics and Society · Physics 2008-12-02 P. K. Mohanty

Increasingly, a huge amount of statistics have been gathered which clearly indicates that income and wealth distributions in various countries or societies follow a robust pattern, close to the Gibbs distribution of energy in an ideal gas…

General Finance · Quantitative Finance 2009-11-13 Arnab Chatterjee , Bikas K. Chakrabarti

The inequality of wealth distribution is a universal phenomenon in the civilized nations, and it is often imputed to the Matthew effect, that is, the rich get richer and the poor get poorer. Some philosophers unjustified this phenomenon and…

Physics and Society · Physics 2014-02-18 Bojin Zheng , Wenhua Du , Wanneng Shu , Jianmin Wang , Deyi Li

We propose in this work a kinetic wealth-exchange model of economic growth by introducing saving as a non consumed fraction of production. In this new model, which starts also from microeconomic arguments, it is found that economic…

General Finance · Quantitative Finance 2019-03-07 D. S. Quevedo , C. J. Quimbay

We study the interplay between evolutionary game and network structure and show how the dynamics of the game affect the growth pattern of the network and how the evolution of the network influence the cooperative behavior in the game.…

Physics and Society · Physics 2007-05-23 Jie Ren , Xiang Wu , Wen-Xu Wang , Guanrong Chen , Bing-Hong Wang

The paper concerns the study of equilibrium points, or steady states, of economic systems arising in modeling optimal investment with \textit{vintage capital}, namely, systems where all key variables (capitals, investments, prices) are…

Optimization and Control · Mathematics 2019-05-06 Silvia Faggian , Fausto Gozzi , Peter M. Kort

We present a dynamical model for the price evolution of financial assets. The model is based in a two level structure. In the first stage one finds an agent-based model that describes the present state of the investors' beliefs,…

Trading and Market Microstructure · Quantitative Finance 2009-07-30 Miquel Montero

We investigate the effects of update rules on the dynamics of an evolutionary game-theoretic model - the N-player evolutionary trust game - consisting of three types of players: investors, trustworthy trustees, and untrustworthy trustees.…

Computer Science and Game Theory · Computer Science 2017-12-20 Manuel Chica , Raymond Chiong , Jose Ramasco , Hussein Abbass

We develop a mathematical framework to study the economic impact of infectious diseases by integrating epidemiological dynamics with a kinetic model of wealth exchange. The multi-agent description leads to study the evolution over time of a…

Physics and Society · Physics 2020-08-12 G. Dimarco , L. Pareschi , G. Toscani , M. Zanella

Persistent wealth inequality, where a small fraction of the population accumulates most resources while the majority remains economically vulnerable, is a widespread phenomenon. We investigate its underlying mechanisms using an agent-based…

Physics and Society · Physics 2026-02-16 Gastón Villafañe , Lautaro Giordano , María Fabiana Laguna

The perceived risk and reward for a given situation can vary depending on resource availability, accumulated wealth, and other extrinsic factors such as individual backgrounds. Based on this general aspect of everyday life, here we use…

Statistical Mechanics · Physics 2021-12-07 Marco A. Amaral , Marcelo M. de Oliveira

In this paper we present detailed simulation results on the wealth distribution model with quenched saving propensities. Unlike other wealth distribution models where the saving propensities are either zero or constant, this model is not…

Physics and Society · Physics 2008-12-02 K. Bhattacharya , G. Mukherjee , S. S. Manna

The aim of this work is to establish the personal income distribution from the elementary constituents of a free market; products of a representative good and agents forming the economic network. The economy is treated as a self-organized…

General Finance · Quantitative Finance 2015-06-04 Joachim Kaldasch

This paper analyzes the equilibrium distribution of wealth in an economy where firms' productivities are subject to idiosyncratic shocks, returns on factors are determined in competitive markets, dynasties have linear consumption functions…

General Finance · Quantitative Finance 2009-06-11 Davide Fiaschi , Matteo Marsili

The Gini index is a function that attempts to measure the amount of inequality in the distribution of a finite resource throughout a population. It is commonly used in economics as a measure of inequality of income or wealth. We define a…

Representation Theory · Mathematics 2023-05-23 Grant Kopitzke