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We investigate the accumulated wealth distribution by adopting evolutionary games taking place on scale-free networks. The system self-organizes to a critical Pareto distribution (1897) of wealth $P(m)\sim m^{-(v+1)}$ with $1.6 < v <2.0$…

Physics and Society · Physics 2009-11-11 Mao-Bin Hu , Wen-Xu Wang , Rui Jiang , Qing-Song Wu , Bing-Hong Wang , Yong-Hong Wu

An equation for the evolution of the distribution of wealth in a population of economic agents making binary transactions with a constant total amount of "money" has recently been proposed by one of us (RLR). This equation takes the form of…

Adaptation and Self-Organizing Systems · Physics 2014-07-29 Yves Pomeau , Ricardo Lopez-Ruiz

We investigate the unbiased model for money exchanges: agents give at random time a dollar to one another (if they have one). Surprisingly, this dynamics eventually leads to a geometric distribution of wealth (shown empirically by…

Probability · Mathematics 2022-08-12 Fei Cao , Pierre-Emmanuel Jabin

Simple agent based exchange models are a commonplace in the study of wealth distribution in an artificial economy. Generally, in a system that is composed of many agents characterized by their wealth and risk-aversion factor, two agents are…

Statistical Mechanics · Physics 2020-06-24 Ben-Hur Francisco Cardoso , Sebastián Gonçalves , José Roberto Iglesias

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

We develop a general framework to analyze the distribution functions of wealth and income. Within this framework we study wealth distribution in a society by using a model which turns on two-party trading for poor people while for rich…

Statistical Mechanics · Physics 2008-12-02 Arnab Das , Sudhakar Yarlagadda

Based on the stochastic model proposed by Patriarca-Kaski-Chakraborti that describes the exchange of wealth between $n$ economic agents, we analyze the evolution of the corresponding economies under the assumption of a Gaussian background,…

General Finance · Quantitative Finance 2011-02-25 J. M. Pellon-Diaz , A. Aragones-Munoz , A. Sandoval-Villalbazo , A. Diaz-Reynoso

We introduce a stochastic model to explain a double power-law distribution which exhibits two different Paretian behaviors in the upper and the lower tail and widely exists in social and economic systems. The model incorporates fitness…

Physics and Society · Physics 2011-04-25 D. D. Han , J. H. Qian , Y. G. Ma

Reproductive success and survival are influenced by wealth in human populations. Wealth is transmitted to offsprings and strategies of transmission vary over time and among populations, the main variation being how equally wealth is…

Physics and Society · Physics 2015-06-23 G. Augustins , L. Etienne , J-B. Ferdy , R. Ferrer , B. Godelle , E. Pitard , F. Rousset

Scale-free networks constitute a fast-developing field that has already provided us with important tools to understand natural and social phenomena. From biological systems to environmental modifications, from quantum fields to high energy…

General Physics · Physics 2021-06-17 Airton Deppman , Evandro Oliveira Andrade Segundo

Pareto law, which states that wealth distribution in societies have a power-law tail, has been a subject of intensive investigations in statistical physics community. Several models have been employed to explain this behavior. However, most…

Trading and Market Microstructure · Quantitative Finance 2009-11-13 M. Ali Saif , Prashant M. Gade

The prevalence of wealth inequality propels us to characterize its origin and progression, via empirical and theoretical studies. The Yard-Sale(YS) model, in which a portion of the smaller wealth is transferred between two individuals,…

Physics and Society · Physics 2024-01-03 Hyun Gyu Lee , Deok-Sun Lee

Many systems of different nature exhibit scale free behaviors. Economic systems with power law distribution in the wealth is one of the examples. To better understand the working behind the complexity, we undertook an empirical study…

Statistical Finance · Quantitative Finance 2009-11-13 S. C. Wang , J. J. Tseng , C. C. Tai , K. H. Lai , W. S. Wu , S. H. Chen , S. P. Li

In the manuscript, we are interested in using kinetic theory to better understand the time evolution of wealth distribution and their large scale behavior such as the evolution of inequality (e.g. Gini index). We investigate three type of…

Probability · Mathematics 2021-05-18 Fei Cao , Sebastien Motsch

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

A detailed empirical analysis of the productivity of non financial firms across several countries and years shows that productivity follows a non-Gaussian distribution with power law tails. We demonstrate that these empirical findings can…

Physics and Society · Physics 2009-11-10 T. Di Matteo , T. Aste , M. Gallegati

We study two kinds of economic exchange, additive and multiplicative, in a system of N agents. The work is divided in two parts, in the first one, the agents are free to interact with each other. The system evolves to a Boltzmann-Gibbs…

Trading and Market Microstructure · Quantitative Finance 2010-10-07 Christian H. Sanabria , R. Huerta-Quintanilla , M. Rodriguez-Achach

This paper studies the trading volumes and wealth distribution of a novel agent-based model of an artificial financial market. In this model, heterogeneous agents, behaving according to the Von Neumann and Morgenstern utility theory, may…

General Finance · Quantitative Finance 2015-09-09 Pietro DeLellis , Franco Garofalo , Francesco Lo Iudice , Elena Napoletano

We study the wealth distribution of the Bouchaud--M\'ezard (BM) model on complex networks. It has been known that this distribution depends on the topology of network by numerical simulations, however, no one have succeeded to explain it.…

Adaptation and Self-Organizing Systems · Physics 2013-01-01 Takashi Ichinomiya

We study the model of interacting agents proposed by Chatterjee et al that allows agents to both save and exchange wealth. Closed equations for the wealth distribution are developed using a mean field approximation. We show that when all…

Other Condensed Matter · Physics 2009-11-10 Przemyslaw Repetowicz , Stefan Hutzler , Peter Richmond