The wealth exchange model based on agents with different strategies

Yang Sun, Zhen Wang, Liang Zhang and Mingfeng He

Physica A: Statistical Mechanics and its Applications, 2008, vol. 387, issue 5, 1311-1318

Abstract: This paper discusses the wealth distribution in a finite-sized closed economic system, where each agent may choose one amongst the four strategies: hawk, defect, cooperate and dove. When two agents encounter, exchange of the wealth is decided by the rules defined. The simulation results show that the equilibrium probability distribution of wealth will be single-peak, double-peak and non-peak distributions for different parameters. Under each condition, we analyze the wealth distribution of agents with every strategy. The results show that there are both the poor and the rich amongst the agents with hawk and defect strategies, which is randomly formed, and the wealth distribution of agents with cooperate strategy is more reasonable, while most of the agents with dove strategy become poor. Finally, the effect of the saving factor in the model is also discussed, and it is shown that lower saving of the agents is easier to result in wealth polarization, on the contrary, higher saving will ensure single-peak more easily.

Keywords: Monte Carlo; Wealth distribution; Strategy; Payoff matrix (search for similar items in EconPapers)
Date: 2008
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:387:y:2008:i:5:p:1311-1318

DOI: 10.1016/j.physa.2007.10.017

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