Wealth redistribution with finite resources
Adaptation and Self-Organizing Systems
2009-11-07 v1 Condensed Matter
General Finance
Abstract
We present a simplified model for the exploitation of finite resources by interacting agents, where each agent receives a random fraction of the available resources. An extremal dynamics ensures that the poorest agent has a chance to change its economic welfare. After a long transient, the system self-organizes into a critical state that maximizes the average performance of each participant. Our model exhibits a new kind of wealth condensation, where very few extremely rich agents are stable in time and the rest stays in the middle class.
Keywords
Cite
@article{arxiv.nlin/0109015,
title = {Wealth redistribution with finite resources},
author = {S. Pianegonda and J. R. Iglesias and G. Abramson and J. L. Vega},
journal= {arXiv preprint arXiv:nlin/0109015},
year = {2009}
}
Comments
4 pages, 3 figures, RevTeX 4 style