Inequalities of Wealth Distribution in a Society with Social Classes

J. R. Iglesias, S. Risau-Gusman and M. F. Laguna
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J. R. Iglesias: Univ. Fed. do Rio Grande do Sul
S. Risau-Gusman: Univ. Fed. do Rio Grande do Sul
M. F. Laguna: The Abdus Salam International Center for Theoretical Physics

A chapter in Practical Fruits of Econophysics, 2006, pp 327-332 from Springer

Abstract: Summary We study a simple model of capital exchange among economic agents in which the effect of a correlation between wealth and connectivity is considered within two different hypotheses: a) agents interact within their own social or economic class and b) agent’s connectivity is related to its success in exchange transactions. The wealth distribution in the first case may generate a two-class society with a clear gap in the middle and highly unequal power law distributions with a great number of strongly impoverished agents and a few very rich ones. In the second case the wealth distribution is modified by the dynamics of the lattice, getting closer to a power law for some values of the parameters of the model. As expected, the lattice itself is different from the random initial one.

Keywords: Econophysics; Wealth Distribution; Pareto’s Law; Dynamic Network (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-4-431-28915-9_60

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DOI: 10.1007/4-431-28915-1_60

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