English
Related papers

Related papers: A simple dynamical model leading to Pareto wealth …

200 papers

We construct an autoregressive model with random coefficients that has a stationary distribution after proper normalization. This limit distribution is found to be stable.

Probability · Mathematics 2015-05-29 Lev B. Klebanov , Gregory Temnov , Ashot Kakosyan

We present a novel reshuffling exchange model and investigate its long time behavior. In this model, two individuals are picked randomly, and their wealth $X_i$ and $X_j$ are redistributed by flipping a sequence of fair coins leading to a…

Probability · Mathematics 2023-01-02 Fei Cao , Nicholas F. Marshall

Asset exchange models (AEMs) provide a physics-inspired framework for studying wealth formation. These models capture wealth distribution dynamics via pairwise money exchanges, yielding steady-state distributions from exponential to…

Physics and Society · Physics 2025-09-30 Joel Wagner , Siew Ann Cheong , Viola Priesemann

We discuss the equivalence between kinetic wealth-exchange models, in which agents exchange wealth during trades, and mechanical models of particles, exchanging energy during collisions. The universality of the underlying dynamics is shown…

General Finance · Quantitative Finance 2009-11-13 Anirban Chakraborti , Marco Patriarca

We extend our study of a simple model of biological coevolution to its statistical properties. Staring with a complete description in terms of a master equation, we provide its relation to the deterministic evolution equations used in…

Populations and Evolution · Quantitative Biology 2007-05-23 R. K. P. Zia , Per Arne Rikvold

We study here the dynamics (and stability) of Probabilistic Population Protocols, via the differential equations approach. We provide a quite general model and we show that it includes the model of Angluin et. al. in the case of very large…

Distributed, Parallel, and Cluster Computing · Computer Science 2008-07-02 Ioannis Chatzigiannakis , Paul G. Spirakis

The LLS stock market model is a model of heterogeneous quasi-rational investors operating in a complex environment about which they have incomplete information. We review the main features of this model and several of its extensions. We…

Statistical Mechanics · Physics 2008-12-02 Sorin Solomon , Moshe Levy

We review the basic kinetic wealth-exchange models of Angle [J. Angle, Social Forces 65 (1986) 293; J. Math. Sociol. 26 (2002) 217], Bennati [E. Bennati, Rivista Internazionale di Scienze Economiche e Commerciali 35 (1988) 735], Chakraborti…

Physics and Society · Physics 2009-11-16 Marco Patriarca , Els Heinsalu , Anirban Chakraborti

This paper studies the income fluctuation problem with capital income risk (i.e., dispersion in the rate of return to wealth). Wealth returns and labor earnings are allowed to be serially correlated and mutually dependent. Rewards can be…

Theoretical Economics · Economics 2018-12-05 Qingyin Ma , John Stachurski , Alexis Akira Toda

We study the Tangled Nature model of macro evolution and demonstrate that the co-evolutionary dynamics produces an increasingly correlated core of well occupied types. At the same time the entire configuration of types becomes increasing…

Statistical Mechanics · Physics 2015-03-13 Dominic Jones , Henrik Jeldtoft Jensen , Paolo Sibani

The conservative wealth-exchange process derived from trade interactions is modeled as a multiplicative stochastic transference of value, where each interaction multiplies the wealth of the poorest of the two intervening agents by a random…

General Finance · Quantitative Finance 2015-05-30 Cristian F. Moukarzel

We propose a class of evolutionary models that involves an arbitrary exchangeable process as the breeding process and different selection schemes. In those models, a new genome is born according to the breeding process, and then a genome is…

Neural and Evolutionary Computing · Computer Science 2020-08-25 Jüri Lember , Chris Watkins

Survey data are widely used to study how income inequality, poverty, and welfare evolve over time. A common practice is to estimate the income distribution separately for each year, treating annual observations as independent…

Econometrics · Economics 2026-04-24 David Gunawan

In a money exchange process involving a seller and a buyer, we develop a straightforward model encompassing conservative, non-conservative, and systems with or without debt. Our model integrates the Fermi function to capture the behavior of…

Dynamical Systems · Mathematics 2024-09-04 Hsin-Lun Li

The principle of linearized stability and instability is established for a classical model describing the spatial movement of an age-structured population with nonlinear vital rates. It is shown that the real parts of the eigenvalues of the…

Analysis of PDEs · Mathematics 2023-12-21 Christoph Walker

It is known that asset exchange models with symmetric interaction between agents show either a Gibbs/log-normal distribution of assets among the agents or condensation of the entire wealth in the hands of a single agent, depending upon the…

Physics and Society · Physics 2008-12-02 Sitabhra Sinha

We propose a model for the growth of weighted networks that couples the establishment of new edges and vertices and the weights' dynamical evolution. The model is based on a simple weight-driven dynamics and generates networks exhibiting…

Disordered Systems and Neural Networks · Physics 2009-11-10 Alain Barrat , Marc Barthelemy , Alessandro Vespignani

The "Money Exchange Model" is a type of agent-based simulation model used to study how wealth distribution and inequality evolve through monetary exchanges between individuals. The primary focus of this model is to identify the limiting…

Probability · Mathematics 2025-01-07 Hironobu Sakagawa

While wealth distribution in the world is highly skewed and heavy-tailed, human talent - as the majority of individual features - is normally distributed. In a recent computational study by Pluchino et al [Talent vs luck: The role of…

Physics and Society · Physics 2020-06-16 Damien Challet , Alessandro Pluchino , Alessio Emanuele Biondo , Andrea Rapisarda

In this paper, we begin our discussion with some of the well-known methods available in the literature for the estimation of the parameters of a univariate/multivariate stable distribution. Based on the available methods, a new hybrid…

Computation · Statistics 2019-02-27 Aastha M. Sathe , Neelesh. S. Upadhye