Equal opportunities lead to maximum wealth inequality
Statistical Mechanics
2022-01-21 v2
Abstract
If wealthier people have advantages in having higher returns than poor, inequality will unequivocally increase, but is equal opportunity enough to prevent it? According to several models in economics and econophysics, no. They all display wealth concentration as a peculiar feature of its dynamics, even though no individual can have repeating gains advantage. Here, generalizing these particular models, we present a rigorous analytical demonstration, using master equation formalism, that any fair market that gives each agent the same expected return conducts the system to maximum inequality.
Keywords
Cite
@article{arxiv.2201.05118,
title = {Equal opportunities lead to maximum wealth inequality},
author = {Ben-Hur Francisco Cardoso and Sebastián Gonçalves and José Roberto Iglesias},
journal= {arXiv preprint arXiv:2201.05118},
year = {2022}
}