Pareto and Boltzmann-Gibbs behaviors in a deterministic multi-agent system

Economy – Quantitative Finance – General Finance

Scientific paper

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9 pages, 9 color .eps figures, submitted to Physica A

Scientific paper

10.1016/j.physa.2008.03.013

A deterministic system of interacting agents is considered as a model for economic dynamics. The dynamics of the system is described by a coupled map lattice with near neighbor interactions. The evolution of each agent results from the competition between two factors: the agent's own tendency to grow and the environmental influence that moderates this growth. Depending on the values of the parameters that control these factors, the system can display Pareto or Boltzmann-Gibbs statistical behaviors in its asymptotic dynamical regime. The regions where these behaviors appear are calculated on the space of parameters of the system. Other statistical properties, such as the mean wealth, the standard deviation, and the Gini coefficient characterizing the degree of equity in the wealth distribution are also calculated on the space of parameters of the system.

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