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A simple heuristic model, including the multiple exchanges between economic agents, is used to explain the mechanism of emerging and maintenance of social inequality in the market economy. The model allows calculating a density function of…

Biological Physics · Physics 2023-03-16 Vladimir Pokrovskii

In the so-called ``fair'' models of peer-to-peer wealth exchanges, economic inequality tends to reach its maximum value asymptotically. This global trend is evident as the richest continuously accumulate a larger share of wealth at the…

Physics and Society · Physics 2023-08-22 Thiago Dias , Sebastián Gonçalves

We present empirical evidence that land values are scale-free and introduce a network model that reproduces the observations. The network approach to urban modelling is based on the assumption that the market dynamics that generates land…

Disordered Systems and Neural Networks · Physics 2009-11-10 Claes Andersson , Alexander Hellervik , Kristian Lindgren , Anders Hagson , Jonas Tornberg

We study aggregation as a mechanism for the creation of complex networks. In this evolution process vertices merge together, which increases the number of highly connected hubs. We study a range of complex network architectures produced by…

Statistical Mechanics · Physics 2009-11-10 M. J. Alava , S. N. Dorogovtsev

Exponential distribution is ubiquitous in the framework of multi-agent systems. Usually, it appears as an equilibrium state in the asymptotic time evolution of statistical systems. It has been explained from very different perspectives. In…

Adaptation and Self-Organizing Systems · Physics 2011-03-10 Ricardo Lopez-Ruiz , Jose-Luis Lopez , Xavier Calbet

Wealth distribution is a complex and critical aspect of any society. Information exchange is considered to have played a role in shaping wealth distribution patterns, but the specific dynamic mechanism is still unclear. In this research, we…

Computer Vision and Pattern Recognition · Computer Science 2023-04-04 Yang Shao , Hirokazu Atsumori , Tadayuki Matsumura , Kanako Esaki , Shunsuke Minusa , Hiroyuki Mizuno

We address the problem of message transfer in a communication network. The network consists of nodes and links, with the nodes lying on a two dimensional lattice. Each node has connections with its nearest neighbours, whereas some special…

Statistical Mechanics · Physics 2007-05-23 Brajendra K. Singh , Neelima M. Gupte

The recent book by T. Piketty (Capital in the Twenty-First Century) promoted the important issue of wealth inequality. In the last twenty years, physicists and mathematicians developed models to derive the wealth distribution using discrete…

Probability · Mathematics 2021-07-19 Bertram Düring , Nicos Georgiou , Enrico Scalas

Adaptive networks rely on in-network and collaborative processing among distributed agents to deliver enhanced performance in estimation and inference tasks. Information is exchanged among the nodes, usually over noisy links. The…

Optimization and Control · Mathematics 2015-06-03 Xiaochuan Zhao , Sheng-Yuan Tu , Ali H. Sayed

We develop a mathematical framework to study the economic impact of infectious diseases by integrating epidemiological dynamics with a kinetic model of wealth exchange. The multi-agent description leads to study the evolution over time of a…

Physics and Society · Physics 2020-08-12 G. Dimarco , L. Pareschi , G. Toscani , M. Zanella

We propose a kinetic model to describe the dynamical evolution of wealth and knowledge in national and global markets, starting from a microscopic description of individual interactions. The model is built upon interaction rules that…

Physics and Society · Physics 2026-02-24 Marzia Bisi , Martina Conte , Maria Groppi

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 construct a model of an exchange economy in which agents trade assets contingent on an observable signal, the probability of which depends on public opinion. The agents in our model are replaced occasionally and each person updates…

Theoretical Economics · Economics 2022-04-28 Jean-Philippe Bouchaud , Roger Farmer

We study the evolution of networks when the creation and decay of links are based on the position of nodes in the network measured by their centrality. We show that the same network dynamics arises under various centrality measures, and…

Physics and Society · Physics 2013-05-29 Michael D. Koenig , Claudio J. Tessone

The presence of hierarchy in many real-world networks is not yet fully explained. Complex interaction networks are often coarse-grain models of vast modular networks, where tightly connected subgraphs are agglomerated into nodes for…

Physics and Society · Physics 2021-02-24 C. Tyler Diggans , Jeremie Fish , Erik Bollt

Yard-Sale (YS) is a stochastic multiplicative wealth-exchange model with two phases: a stable one where wealth is shared, and an unstable one where wealth condenses onto one agent. YS is here studied numerically on 1d rings, 2d square…

General Finance · Quantitative Finance 2015-06-11 R. Bustos-Guajardo , Cristian F. Moukarzel

A continuous variable changing between 0 and 1 is introduced to characterise contentment, or satisfaction with life, of an individual and an equation governing its evolution is postulated from analysis of several factors likely to affect…

General Economics · Economics 2021-09-01 Alexey A. Burluka

We investigate the uniform reshuffling model for money exchanges: two agents picked uniformly at random redistribute their dollars between them. This stochastic dynamics is of mean-field type and eventually leads to a exponential…

Probability · Mathematics 2021-04-06 Fei Cao , Pierre-Emmanuel Jabin , Sebastien Motsch

We study the poor-biased model for money exchange introduced in [2]: agents are being randomly picked at a rate proportional to their current wealth, and then the selected agent gives a dollar to another agent picked uniformly at random.…

Probability · Mathematics 2025-01-15 Roberto Cortez , Fei Cao

Many biological, ecological and economic systems are best described by weighted networks, as the nodes interact with each other with varying strength. However, most network models studied so far are binary, the link strength being either 0…

Disordered Systems and Neural Networks · Physics 2009-11-07 S. H. Yook , H. Jeong , A. -L. Barabasi , Y. Tu
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