Evolution of the distribution of wealth in an economic environment driven by local Nash equilibria

DOI10.1007/S10955-013-0888-4zbMATH Open1298.91104arXiv1307.1685OpenAlexW2135823006MaRDI QIDQ2016547FDOQ2016547

Authors: Jian-Guo Liu, Pierre Degond, Christian Ringhofer 

Publication date: 20 June 2014

Published in: Journal of Statistical Physics (Search for Journal in Brave)

Abstract: We present and analyze a model for the evolution of the wealth distribution within a heterogeneous economic environment. The model considers a system of rational agents interacting in a game theoretical framework, through fairly general assumptions on the cost function. This evolution drives the dynamic of the agents in both wealth and economic configuration variables. We consider a regime of scale separation where the large scale dynamics is given by a hydrodynamic closure with a Nash equilibrium serving as the local thermodynamic equilibrium. The result is a system of gas dynamics-type equations for the density and average wealth of the agents on large scales. We recover the inverse gamma distribution as an equilibrium in the particular case of quadratic cost functions which has been previously considered in the literature.

Full work available at URL: https://arxiv.org/abs/1307.1685

Recommendations

• Evolution of wealth in a non-conservative economy driven by local Nash equilibria
• A game theoretic model of wealth distribution
• Convergence to an exponential wealth distribution in a random market model
• Large-scale dynamics of mean-field games driven by local Nash equilibria
• Study of A model for the distribution of wealth

zbMATH Keywords

Fokker-Planck equationgeometric Brownian motionkinetic modelNash equilibriumGibbs measureinverse gamma distributionhydrodynamic-like modelnon-quadratic cost function

Mathematics Subject Classification ID

Fokker-Planck equations (35Q84) Stochastic methods (Fokker-Planck, Langevin, etc.) applied to problems in time-dependent statistical mechanics (82C31) Stochastic games, stochastic differential games (91A15) Special types of economic equilibria (91B52)

Cites Work

• Equilibrium points in n -person games
• Stochastic differential equations. An introduction with applications.
• Mean field games
• Potential games
• On a kinetic model for a simple market economy
• Large-scale dynamics of mean-field games driven by local Nash equilibria
• Title not available (Why is that?)
• Markets with a Continuum of Traders
• Mathematical modeling of collective behavior in socio-economic and life sciences
• Existence and uniqueness of equilibrium for a spatial model of social interactions
• Optimal transport and Cournot-Nash equilibria
• Income Distribution and Macroeconomics
• Exponential concentration for first passage percolation through modified Poincaré inequalities
• Equilibrium points of nonatomic games
• On a theorem of Schmeidler
• Values of Large Games, I: A Limit Theorem
• Statistical equilibrium wealth distributions in an exchange economy with stochastic preferences.
• Deviation Inequalities on Largest Eigenvalues
• Kinetic models for the trading of goods
• Status, the Distribution of Wealth, Private and Social Attitudes to Risk

Cited In (28)

• Random Batch Methods for Classical and Quantum Interacting Particle Systems and Statistical Samplings
• Random batch methods (RBM) for interacting particle systems
• Kinetic models for optimal control of wealth inequalities
• Wealth distribution evolution in an agent-based computational economy
• On quasi-stationary mean field games models
• Modeling behavioral social systems
• Hadamard weighted geometric mean inequalities for the spectral and essential spectral radius of positive operators on Banach function and sequence spaces
• Inequalities on the spectral radius, operator norm and numerical radius of the Hadamard weighted geometric mean of positive kernel operators
• Equiprobability, entropy, gamma distributions and other geometrical questions in multi-agent systems
• Inequalities and equalities on the joint and generalized spectral and essential spectral radius of the Hadamard geometric mean of bounded sets of positive kernel operators
• Inequalities on the joint and generalized spectral and essential spectral radius of the Hadamard geometric mean of bounded sets of positive kernel operators
• Wealth-sensitive positional competition as a source of dynamic complexity in OLG models
• A kinetic games framework for insurance plans
• Recent Developments in Controlled Crowd Dynamics
• Stochastic evolutionary differential games toward a systems theory of behavioral social dynamics
• Control Strategies for the Dynamics of Large Particle Systems
• Evolution of wealth in a non-conservative economy driven by local Nash equilibria
• On growth-optimal tax rates and the issue of wealth inequalities
• The dynamics of fitness and wealth distributions -- a stochastic game-theoretic model
• Some free boundary problems involving non-local diffusion and aggregation
• Existence of compactly supported global minimisers for the interaction energy
• Bounds on the joint and generalized spectral radius of the Hadamard geometric mean of bounded sets of positive kernel operators
• From mean field games to the best reply strategy in a stochastic framework
• Logarithmic convexity of fixed points of stochastic kernel operators
• Matching, heterogeneity, and the evolution of income distribution
• Convergence of a linearly transformed particle method for aggregation equations
• Partial mean field limits in heterogeneous networks
• The impacts of entrepreneurship on wealth distribution

This page was built for publication: Evolution of the distribution of wealth in an economic environment driven by local Nash equilibria

Report a bug (only for logged in users!)Click here to report a bug for this page (MaRDI item Q2016547)