Wealth Distributions in Models of Capital Exchange

Details Wealth Distributions in Models of Capital Exchange Wealth Distributions in Models of Capital Exchange

1997-08-03

arxiv.org/abs/cond-mat/9708018v1

Eur. Phys. J. B 2, 267-76 (1998)

Physics

Condensed Matter

Statistical Mechanics

10 pages, RevTeX, 4 figures, to be submitted to PRE

Scientific paper

10.1007/s100510050249

A dynamical model of capital exchange is introduced in which a specified amount of capital is exchanged between two individuals when they meet. The resulting time dependent wealth distributions are determined for a variety of exchange rules. For ``greedy'' exchange, an interaction between a rich and a poor individual results in the rich taking a specified amount of capital from the poor. When this amount is independent of the capitals of the two traders, a mean-field analysis yields a Fermi-like scaled wealth distribution in the long-time limit. This same distribution also arises in greedier exchange processes, where the interaction rate is an increasing function of the capital difference of the two traders. The wealth distribution in multiplicative processes, where the amount of capital exchanged is a finite fraction of the capital of one of the traders, are also discussed. For random multiplicative exchange, a steady state wealth distribution is reached, while in greedy multiplicative exchange a non-steady power law wealth distribution arises, in which the support of the distribution continuously increases. Finally, extensions of our results to arbitrary spatial dimension and to growth processes, where capital is created in an interaction, are presented.

Affiliated with

Also associated with

No associations

Rating

Wealth Distributions in Models of Capital Exchange 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 Wealth Distributions in Models of Capital Exchange, we encourage you to share that experience with our LandOfFree.com community. Your opinion is very important and Wealth Distributions in Models of Capital Exchange will most certainly appreciate the feedback.

Rate now

Comments { 0 }

Profile ID: LFWR-SCP-O-516185