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Inequality and its consequences are the subject of intense recent debate. Using a simplified model of the economy, we address the relation between inequality and liquidity, the latter understood as the frequency of economic exchanges.…

Economics · Quantitative Finance 2016-08-03 João Pedro Jerico , François P. Landes , Matteo Marsili , Isaac Pérez Castillo , Valerio Volpati

We discuss several multi-agent models that have their origin in the kinetic exchange theory of statistical mechanics and have been recently applied to a variety of problems in the social sciences. This class of models can be easily adapted…

Physics and Society · Physics 2013-06-18 Marco Patriarca , Anirban Chakraborti

The lack of cooperation can easily result in inequality among members of a society, which provides an increasing gap between individual incomes. To tackle this issue, we introduce an incentive mechanism based on individual strategies and…

Physics and Society · Physics 2025-01-24 Luo-Luo Jiang , Yi-Ming Li , Wen-Jing Li , Attila Szolnoki

Various multi-agent models of wealth distributions defined by microscopic laws regulating the trades, with or without a saving criterion, are reviewed. We discuss and clarify the equilibrium properties of the model with constant global…

Physics and Society · Physics 2013-03-19 Marco Patriarca , Anirban Chakraborti , Kimmo Kaski , Guido Germano

In the 70's Schelling introduced a multi-agent model to describe the segregation dynamics that may occur with individuals having only weak preferences for 'similar' neighbors. Recently variants of this model have been discussed, in…

Physics and Society · Physics 2015-05-18 L. Gauvin , J. -P. Nadal , J. Vannimenus

We present a detailed numerical analysis of the modified version of a conservative self-organized extremal model introduced by Pianegonda et. al. for the distribution of wealth of the people in a society. Here the trading process has been…

General Finance · Quantitative Finance 2015-05-30 Abhijit Chakraborty , G. Mukherjee , S. S. Manna

We investigate the detailed dynamics of gains and losses made by agents in some kinetic models of wealth exchange. The concept of a walk in an abstract gain-loss space for the agents had been introduced in an earlier work. For models in…

Physics and Society · Physics 2013-05-29 Sanchari Goswami , Arnab Chatterjee , Parongama Sen

We investigate the unbiased model for money exchanges with collective debt limit: agents give at random time a dollar to one another as long as they have at least one dollar or they can borrow a dollar from a central bank if the bank is not…

Probability · Mathematics 2022-08-24 Fei Cao , Sébastien Motsch

To gain insights into the problem of regional inequality, we proposed new regional asset exchange models based on existing kinetic income-exchange models in economic physics. We did this by setting the spatial exchange range and adding bias…

Physics and Society · Physics 2020-07-27 Takeshi Kato , Yasuyuki Kudo , Hiroyuki Mizuno , Yoshinori Hiroi

Understanding evacuation decision-making behaviour is one of the key components for designing disaster mitigation policies. This study investigates how communications between household agents in a community influence self-evacuation…

Multiagent Systems · Computer Science 2026-02-24 Made Krisnanda , Raymond Chiong , Yang Yang , Kirill Glavatskiy

We study the effect of altruism in two simple asset exchange models: the yard sale model (winner gets a random fraction of the poorer player's wealth) and the theft and fraud model (winner gets a random fraction of the loser's wealth). We…

Physics and Society · Physics 2009-11-11 M. Rodriguez-Achach , R. Huerta-Quintanilla

We study here numerically the behavior of an ideal gas like model of markets having only one non-consumable commodity. We investigate the behavior of the steady-state distributions of money, commodity and total wealth, as the dynamics of…

Physics and Society · Physics 2009-11-13 Arnab Chatterjee , Bikas K. Chakrabarti

In this paper, we continue our analysis of spatial versions of agent-based models for the dynamics of money that have been introduced in the statistical physics literature, focusing on two models with debts. Both models consist of systems…

Probability · Mathematics 2019-10-02 Nicolas Lanchier , Stephanie Reed

Inspired by Adam Smith and Friedrich Hayek, many economists have postulated the existence of invisible forces that drive economic markets. These market forces interact in complex ways making it difficult to visualize or understand the…

Economics · Quantitative Finance 2015-11-26 Klaus Jaffe

The emergence of cooperation in the groups of interacting agents is one of the most fascinating phenomena observed in many complex systems studied in social science and ecology, even in the situations where one would expect the agent to use…

Physics and Society · Physics 2026-05-12 Jarosław Adam Miszczak

We introduce an auto-regressive model which captures the growing nature of realistic markets. In our model agents do not trade with other agents, they interact indirectly only through a market. Change of their wealth depends, linearly on…

General Finance · Quantitative Finance 2009-07-28 Urna Basu , P. K. Mohanty

We introduce and discuss a nonlinear kinetic equation of Boltzmann type which describes the influence of knowledge in the evolution of wealth in a system of agents which interact through the binary trades introduced in Cordier, Pareschi,…

General Finance · Quantitative Finance 2015-06-18 Lorenzo Pareschi , Giuseppe Toscani

We consider a Schelling-like segregation model, in which the behavior of individual agents is determined by a mixed individual and global utility. With a high ratio of global utility being incorporated, the agents are cooperative in order…

Mesoscale and Nanoscale Physics · Physics 2022-10-25 Akihisa Okada , Daisuke Inoue , Shihori Koyama , Tadayoshi Matsumori , Hiroaki Yoshida

Over the past decades, breakthroughs such as Reinforcement Learning (RL) and Agent-based modeling (ABM) have made simulations of economic models feasible. Recently, there has been increasing interest in applying ABM to study the impact of…

General Economics · Economics 2022-11-23 Xinyu Li

Economic inequality emerges from the interplay between regional growth-rate differences and the interaction network that couples regions. We propose a minimal income-dynamics model, where heterogeneity is governed by growth-rate…

Statistical Mechanics · Physics 2026-05-14 Jaeseok Hur , Meesoon Ha , Hawoong Jeong