Physics – Physics and Society
Scientific paper
2006-03-10
Physics
Physics and Society
7 pages, 8 figures
Scientific paper
10.1016/j.physa.2006.04.088
Different models to study the wealth distribution in an artificial society have considered a transactional dynamics as the driving force. Those models include a risk aversion factor, but also a finite probability of favoring the poorer agent in a transaction. Here we study the case where the partners in the transaction have a previous knowledge of the winning probability and adjust their risk aversion taking this information into consideration. The results indicate that a relatively equalitarian society is obtained when the agents risk in direct proportion to their winning probabilities. However, it is the opposite case that delivers wealth distribution curves and Gini indices closer to empirical data. This indicates that, at least for this very simple model, either agents have no knowledge of their winning probabilities, either they exhibit an ``irrational'' behavior risking more than reasonable.
Fuentes Miguel A.
Iglesias J. R.
Kuperman Marcelo N.
No associations
LandOfFree
Living in an Irrational Society: Wealth Distribution with Correlations between Risk and Expected Profits does not yet have a rating. At this time, there are no reviews or comments for this scientific paper.
If you have personal experience with Living in an Irrational Society: Wealth Distribution with Correlations between Risk and Expected Profits, we encourage you to share that experience with our LandOfFree.com community. Your opinion is very important and Living in an Irrational Society: Wealth Distribution with Correlations between Risk and Expected Profits will most certainly appreciate the feedback.
Profile ID: LFWR-SCP-O-114977