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I discuss economic and social sources of inequality and elaborate on the role of social networks in inequality, economic immobility, and economic inefficiencies. The lens of social networks clarifies how the entanglement of people's…

General Economics · Economics 2025-06-17 Matthew O. Jackson

We recently proposed a model coupling the evolution of the opinions of the individual with the local network topology. The opinion dynamics is based on the Bounded Confidence model. The social networks is based on a group concept where each…

Physics and Society · Physics 2010-03-19 F. Gargiulo , S. Huet

This paper studies the economic role of persistent dispersion in allocations across agents. We develop a tractable model in which firms allocate resources under imperfect information and behavioral updating, generating sustained…

Theoretical Economics · Economics 2026-04-02 Nazaria Solferino

Prosocial behaviors are encountered in the donation game, the prisoner's dilemma, relaxed social dilemmas, and public goods games. Many studies assume that the population structure is homogeneous, meaning all individuals have the same…

Populations and Evolution · Quantitative Biology 2020-05-28 Alex McAvoy , Benjamin Allen , Martin A. Nowak

Endogenous, ideas-led, growth theory and agent based modelling with neighbourhood effects literature are crossed. In an economic overlapping generations framework, it is shown how social interactions and neighbourhood effects are of vital…

Adaptation and Self-Organizing Systems · Physics 2007-05-23 Tanya Araujo , Miguel St. Aubyn

We study the Proportional Response dynamic in exchange economies, where each player starts with some amount of money and a good. Every day, the players bring one unit of their good and submit bids on goods they like, each good gets…

Computer Science and Game Theory · Computer Science 2023-09-13 Simina Brânzei , Nikhil R. Devanur , Yuval Rabani

A novel mathematical framework is proposed to describe the ecological and evolutionary consequences of consumer--resource interactions. Both the consumer and resource are assumed to consist of several (sub)species, which interact between…

Populations and Evolution · Quantitative Biology 2025-11-11 Alexander S. Bratus , Sergei V. Drozhzhin , Artem S. Novozhilov

We present an agent-based model of microscopic wealth exchange in a dynamic network to study the topological features associated with economic inequality. The model evolves through two alternating processes, the conservative exchange of…

Physics and Society · Physics 2024-08-30 Gustavo Kohlrausch , Sebastián Gonçalves

The efficient market hypothesis (EMH), based on rational expectations and market equilibrium, is the dominant perspective for modelling economic markets. However, the most notable critique of the EMH is the inability to model periods of…

Multiagent Systems · Computer Science 2023-02-14 Benjamin Patrick Evans , Mikhail Prokopenko

We propose a tractable unified framework to study the evolution and interaction of model-misspecification concerns and complexity aversion in repeated decision problems. This aims to capture environments where decision makers worry that…

Theoretical Economics · Economics 2026-02-18 Drew Fudenberg , Florian Mudekereza

Modularity structures are common in various social and biological networks. However, its dynamical origin remains an open question. In this work, we set up a dynamical model describing the evolution of a social network. Based on the…

Physics and Society · Physics 2011-08-19 Menghui Li , Shuguang Guan , Choy-Heng Lai

This study simulates the evolution of artificial economies in order to understand the tax relevance of administrative boundaries in the quality of life of its citizens. The modeling involves the construction of a computational algorithm,…

Multiagent Systems · Computer Science 2016-10-10 Bernardo Alves Furtado , Isaque Daniel Rocha Eberhardt

The tragedy of the commons has traditionally been framed as a problem of resource overuse driven by self-interested exploitation. In contrast, growing empirical evidence shows that insufficient use or abandonment of natural resources, known…

Populations and Evolution · Quantitative Biology 2026-05-01 Shota Shibasaki , Wakaba Tateishi , Shuhei Fujii , Ryosuke Nakadai

The process of evolutionary emergence of purposeful adaptive behavior is investigated by means of computer simulations. The model proposed implies that there is an evolving population of simple agents, which have two natural needs: energy…

Neural and Evolutionary Computing · Computer Science 2007-05-23 Mikhail S. Burtsev , Vladimir G. Redko , Roman V. Gusarev

To make decisions we are guided by the evidence we collect, as well as the opinions of friends and neighbors. How do we integrate our private beliefs with information we obtain from our social network? To understand the strategies humans…

Physics and Society · Physics 2020-03-04 Bhargav Karamched , Simon Stolarczyk , Zachary Kilpatrick , Krešimir Josić

World models have emerged as a unifying paradigm for learning latent dynamics, simulating counterfactual futures, and supporting planning under uncertainty. In this paper, we argue that computational epidemiology is a natural and…

Machine Learning · Computer Science 2026-04-14 Zeeshan Memon , Yiqi Su , Christo Kurisummoottil Thomas , Walid Saad , Liang Zhao , Naren Ramakrishnan

In times of plenty expectations rise, just as in times of crisis they fall. This can be mathematically described as a Win-Stay-Lose-Shift strategy with dynamic aspiration levels, where individuals aspire to be as wealthy as their average…

Physics and Society · Physics 2016-10-04 Marco A. Amaral , Lucas Wardil , Matjaz Perc , Jafferson K. L. da Silva

Will a large economy be stable? Building on Robert May's original argument for large ecosystems, we conjecture that evolutionary and behavioural forces conspire to drive the economy towards marginal stability. We study networks of firms in…

Physics and Society · Physics 2019-09-25 José Moran , Jean-Philippe Bouchaud

We investigate the effects of stockholding on households' attention to the macroeconomy. Households' attentiveness is measured by their accuracy of inflation expectations and perceptions. Relative to non-stockholders, stockholders produce…

General Economics · Economics 2024-07-24 Hie Joo Ahn , Shihan Xie

Persistent economic competition is often justified as a mechanism of innovation, efficiency, and welfare maximization. Yet empirical evidence across disciplines reveals that competition systematically generates fragility, inequality, and…

Theoretical Economics · Economics 2025-06-16 Marcelo S. Tedesco , Gonzalo Marquez