Wealth redistribution with conservative exchanges

S Pianegonda, J.r Iglesias, G Abramson and J.l Vega

Physica A: Statistical Mechanics and its Applications, 2003, vol. 322, issue C, 667-675

Abstract: We present a simplified model for the exploitation of resources by interacting agents, where each agent receives a random fraction of the available resources. An extremal dynamics ensures that the poorest agent has a chance to change its economic welfare. After a long transient; the system self-organizes into a critical state that maximizes the average performance of each participant. Our model exhibits a new kind of wealth condensation, where very few extremely rich agents are stable in time and the rest stays in the middle class.

Keywords: Econophysics; Wealth distribution; Extremal dynamics (search for similar items in EconPapers)
Date: 2003
References: View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:322:y:2003:i:c:p:667-675

DOI: 10.1016/S0378-4371(02)01737-5

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