Wealth condensation in a Barabasi–Albert network

J. Vázquez-Montejo, R. Huerta-Quintanilla and M. Rodríguez-Achach

Physica A: Statistical Mechanics and its Applications, 2010, vol. 389, issue 7, 1464-1470

Abstract: We study the flow of money among agents in a Barabasi–Albert (BA) scale free network, where each network node represents an agent and money exchange interactions are established through links. The system allows money trade between two agents at a time, betting a fraction f of the poorer’s agent wealth. We also allow for the bet to be biased, giving the poorer agent a winning probability p. In the no network case there is a phase transition involving a relationship between p and f. In the networked case, we also found a condensation interface, however, this is not a complete condensation due to the presence of clusters in the network and its topology. As can be expected, the winner is always a well-connected agent, but we also found that the mean wealth decreases with the agents’ connectivity.

Keywords: Econophysics; Scale free networks; Gambling; Power laws; Wealth distribution (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:389:y:2010:i:7:p:1464-1470

DOI: 10.1016/j.physa.2009.12.013

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