Complex network model of the phase transition on the wealth distributions - from Pareto to the society without middle class

Details Complex network model of the phase transition on the wealth distributions - from Pareto to the society without middle class Complex network model of the phase transition on the wealth distributions - from Pareto to the society without middle class

2010-10-11

arxiv.org/abs/1010.2173v1

Physics

Physics and Society

Scientific paper

A model of distribution of the wealth in a society based on the properties of complex networks has been proposed. The wealth is interpreted as a consequence of communication possibilities and proportional to the number of connections possessed by a person (as a vertex of the social network). Numerical simulation of wealth distribution shows a transition from the Pareto law to distribution with a gap demonstrating the absence of the middle class. Such a transition has been described as a second-order phase transition, the order parameter has been introduced and the value of the critical exponent has been found.

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