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Recently several authors have proposed stochastic evolutionary models for the growth of complex networks that give rise to power-law distributions. These models are based on the notion of preferential attachment leading to the ``rich get…

Physics and Society · Physics 2007-05-23 Trevor Fenner , Mark Levene , George Loizou

Exponential distribution is ubiquitous in the framework of multi-agent systems. An alternative approach with an economic motivation to derive the exponential distribution in the framework of iterations in the space of distributions is…

General Finance · Quantitative Finance 2010-11-15 Ricardo Lopez-Ruiz

We model a closed economic system with interactions that generates the features of empirical wealth distribution across all wealth brackets, namely a Gibbsian trend in the lower and middle wealth range and a Pareto trend in the higher…

General Finance · Quantitative Finance 2008-12-02 Marisciel L. Palima , Eduardo J. David

The use of kinetic modelling based on partial differential equations for the dynamics of stock price formation in financial markets is briefly reviewed. The importance of behavioral aspects in market booms and crashes and the role of…

Trading and Market Microstructure · Quantitative Finance 2010-07-12 Dario Maldarella , Lorenzo Pareschi

This article discusses the algorithms for finding the optimal solution of problems related to the location of temporary storage of goods, warehouses, factories for processing raw materials and shops selling the final product in the…

Optimization and Control · Mathematics 2019-04-09 Oleg Malafeyev , Schenikova Snezhana

We present analytical investigations of a multiplicative stochastic process that models a simple investor dynamics in a random environment. The dynamics of the investor's budget, $x(t)$, depends on the stochasticity of the return on…

Portfolio Management · Quantitative Finance 2009-11-13 Emeterio Navarro , Ruben Cantero , Joao Rodrigues , Frank Schweitzer

This paper attempts to find a relationship between agents' risk aversion and inequality of incomes. Specifically, a model is proposed for the evolution in time of surplus/deficit distribution, and the long-time distributions are…

Economics · Quantitative Finance 2016-05-12 Eleonora Perversi , Eugenio Regazzini

We propose a method for modeling and learning turn-taking behaviors for accessing a shared resource. We model the individual behavior for each agent in an interaction and then use a multi-agent fusion model to generate a summary over the…

Machine Learning · Computer Science 2018-12-12 Katherine Metcalf , Barry-John Theobald , Nicholas Apostoloff

We study the wealth distribution of UK households through a detailed analysis of data from wealth surveys and rich lists, and propose a non-linear Kesten process to model the dynamics of household wealth. The main features of our model are…

Theoretical Economics · Economics 2022-09-07 Samuel Forbes , Stefan Grosskinsky

Many analyses of resource-allocation problems employ simplistic models of the population. Using the example of a resource-allocation problem of Marecek et al. [arXiv:1406.7639], we introduce rather a general behavioural model, where the…

Optimization and Control · Mathematics 2025-09-09 Jonathan Epperlein , Jakub Marecek

A version of the Schelling model on $\mathbb{Z}$ is defined, where two types of agents are allocated on the sites. An agent prefers to be surrounded by other agents of its own type, and may choose to move if this is not the case. It then…

Probability · Mathematics 2019-06-21 Maria Deijfen , Timo Hirscher

The rich-get-richer mechanism (agents increase their ``wealth'' randomly at a rate proportional to their holdings) is often invoked to explain the Pareto power-law distribution observed in many physical situations, such as the degree…

General Finance · Quantitative Finance 2008-12-02 James P. Bagrow , Jie Sun , Daniel ben-Avraham

We present a minimal agent-based model of interacting agents characterized by their wealth to study taxation and inequality in a non-conservative economy. Wealth evolves through an extremal stochastic replacement process in which the…

Physics and Society · Physics 2026-05-05 Lautaro Giordano , Sebastian Gonçalves , José Roberto Iglesias , María Fabiana Laguna

We address the issue of the dynamics of wealth accumulation and economic crisis triggered by extreme inequality, attempting to stick to most possibly intrinsic assumptions. Our general framework is that of pure or modified multiplicative…

Economics · Quantitative Finance 2017-05-17 Henri Benisty

In financial markets, low prices are generally associated with high volatilities and vice-versa, this well known stylized fact usually being referred to as leverage effect. We propose a local volatility model, given by a stochastic…

Computational Finance · Quantitative Finance 2019-02-25 Antoine Lejay , Paolo Pigato

A growing body of theoretical and empirical evidence shows that the global steady-state distributions of many equilibrium and nonequilibrium systems approximately satisfy an analogue of the Boltzmann distribution, with a local dynamical…

Statistical Mechanics · Physics 2025-12-03 Jacob Calvert , Dana Randall

In this paper we discuss a scaling approach to business fluctuations. Our starting point consists in recognizing that concepts and methods derived from physics have allowed economists to (re)discover a set of stylized facts which have to be…

A network of agents interacting both with competitive and/or cooperative mechanisms is modeled by using fermionic ladder operators. The time evolution of the network is assumed to be governed by a Hermitian time-independent Hamiltonian…

Physics and Society · Physics 2025-05-30 G. Giunta , M. Gorgone , F. Oliveri

Boltzmann-Gibbs distribution arises as the statistical equilibrium probability distribution of money among the agents of a closed economic system where random and undirected exchanges are allowed. When considering a model with uniform…

Adaptation and Self-Organizing Systems · Physics 2015-06-11 Ismael Martinez-Martinez , Ricardo Lopez-Ruiz

We introduce and discuss a nonlinear kinetic equation of Boltzmann type which describes the evolution of wealth in a pure gambling process, where the entire sum of wealths of two agents is up for gambling, and randomly shared between the…

General Finance · Quantitative Finance 2015-05-18 Federico Bassetti , Giuseppe Toscani
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