Wealth condensation in a multiplicative random asset exchange model

An overview to networks and its applications

“…In these kind of processes the stationary state is reached after more MCS, because the system goes through a maximum in the entropy before to get the stationary condition. The difference with the previous case is that in this system condensation 2 is present [5]. This is the reason why the entropy decreases for large times and the poverty increases (see Fig 8(b)).…”

Wealth distribution under Yard–Sale exchange with proportional taxes

“…This return distribution can be interpreted to mean that the poor agent wins (with probability p) or loses (with probability ð1 À pÞ), a fraction f of its own wealth. 10 In this work we¯xed p ¼ 1=2 (in each interaction, the poor and the rich have the same odds to win), so that hi ¼ 0, as studied by Boghosian. 13,14 In all cases f ¼ 0:05, so that h 2 i ¼ f 2 ¼ 2:5 Â 10 À3 .…”

“…The wealth exchange model known as YS [9][10][11] represents commercial interaction between pairs of economic agents. Considering a closed system of N equally able agents with total wealth W , each commercial interaction is modeled as a stochastic pairwise exchange, from the rich to the poor agent, of an amount Áw ¼ Á w poor , where w poor is the wealth of the poorest agent in each transaction and is a random return.…”

“…satisfying hlnð1 þ Þi < 0. In this case there is no stable wealth distribution 10,11 under YS alone, as commercial interactions systematically transfer wealth from the poor to the rich. However, by adding a strong enough redistributive mechanism, equilibrium can be attained.…”

Effect of segregation on inequality in kinetic models of wealth exchange

“…(4) This individual saving behaviour prevents agents from ending up in complete poverty (m i = 0), altering the exponential law into a distribution peaked at finite m, which has been argued to be a gamma distribution [27]. In the case of multiplicative exchange, such saving behaviour does not always prevent wealth condensation [25]. To reflect the fact that not everyone in society manages their money in the same way, we also study the case where some people spend a lot, while others save everything they acquire.…”