Wealth redistribution with conservative exchanges

DOI10.1016/S0378-4371(02)01737-5MaRDI QIDQ1867955zbMATH OpenOpenAlexFDO

Authors J. L. Vega, Salete Pianegonda, José Roberto Iglesias, G. Abramson

Publication date 23 April 2003

Published in Physica A (Search for Journal in Brave)

Full work available at URL https://arxiv.org/abs/nlin/0109015

zbMATH Keywords

critical stateinteracting agentsresource exploitation

Mathematics Subject Classification ID

Resource and cost allocation (including fair division, apportionment, etc.) (91B32)

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.

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Cites work

• Aggregate fluctuations from independent sectoral shocks: self-organized criticality in a model of production and inventory dynamics
• Econophysics: Scaling and its breakdown in finance
• Effects of regulation on a self-organized market
• Finite market size as a source of extreme wealth inequality and market instability

Cited in

(10)

• The nonuniversality of wealth distribution tails near wealth condensation criticality
• Laissez-faire or full redistribution?
• Scaling in income inequalities and its dynamical origin
• Wealth condensation and ``corruption in a toy model
• Agent based models for wealth distribution with preference in interaction
• Wealth redistribution in our small world
• Wealth redistribution in Boltzmann-like models of conservative economies
• Wealth distribution and collective knowledge: a Boltzmann approach
• Duality in an asset exchange model for wealth distribution
• Derivation of wealth distributions from biased exchange of money

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