  
|
     
|
The European Physical Journal B
ISSN: 1434-6028 (printed version)
ISSN: 1434-6036 (electronic version)
Abstract Volume 2 Issue 2 (1998) pp 267-276
Wealth distributions in asset exchange models
S. Ispolatov (a), P.L. Krapivsky, S. Redner (b)
Center for Polymer Studies and Department of Physics, Boston University, Boston, MA 02215, USA
Received: 13 August 1997 / Revised: 31 December 1997 / Accepted: 26 January 1998
Abstract: A model for the evolution of the wealth distribution in an economically interacting population is introduced, in which a specified amount of assets are exchanged between two individuals when they interact. The resulting wealth distributions are determined for a variety of exchange rules. For "random" exchange, either individual is equally likely to gain in a trade, while "greedy" exchange, the richer individual gains. When the amount of asset traded is fixed, random exchange leads to a Gaussian wealth distribution, while greedy exchange gives a Fermi-like scaled wealth distribution in the long-time limit. Multiplicative processes are also investigated, where the amount of asset exchanged is a finite fraction of the wealth of one of the traders. For random multiplicative exchange, a steady state occurs, while in greedy multiplicative exchange a continuously evolving power law wealth distribution arises.
PACS. 02.50.Ga Markov processes - 05.70.Ln Nonequilibrium thermodynamics, irreversible processes - 05.40.+j Fluctuation phenomena, random processes, and Brownian motion
(a) Current address: Department of Physics, McGill University, 3600 rue University, Montreal P.Q., Canada, H3A 2T8
(b) email: redner@sid.bu.edu
Online publication: May 5, 1998
LINK Helpdesk
© EDP Sciences, Springer-Verlag 1998