Money distribution in agent-based models with position-exchange dynamics
- Wealth and income distributions are known to feature country-specific Pareto exponents for their long power-law tails. To propose a rationale for this, we introduce an agent-based dynamic model and use Monte Carlo simulations to unveil the wealth distributions in closed and open economical systems. The standard money-exchange scenario is supplemented with the position-exchange agent dynamics that vitally affects the Pareto law. Specifically, in closed systems with position-exchange dynamics the power law changes to an exponential shape, while for open systems with traps the Pareto law remains valid.
| Author details: | Ekrem Aydiner, Andrey G. CherstvyORCiD, Ralf MetzlerORCiDGND |
|---|---|
| DOI: | https://doi.org/10.1140/epjb/e2019-90674-0 |
| ISSN: | 1434-6028 |
| ISSN: | 1434-6036 |
| Title of parent work (English): | The European physical journal : B, Condensed matter and complex systems |
| Subtitle (English): | the Pareto paradigm revisited |
| Publisher: | Springer |
| Place of publishing: | New York |
| Publication type: | Article |
| Language: | English |
| Date of first publication: | 2019/05/20 |
| Publication year: | 2019 |
| Release date: | 2021/02/25 |
| Tag: | Statistical and Nonlinear Physics |
| Volume: | 92 |
| Issue: | 5 |
| Number of pages: | 4 |
| Funding institution: | Istanbul UniversityIstanbul University [BYP-2018-45662]; Deutsche Forschungsgemeinschaft (DFG)German Research Foundation (DFG) [ME 1535/6-1, ME 1535/7-1]; Foundation for Polish Science within an Alexander von Humboldt Polish Honorary Research Fellowship |
| Organizational units: | Mathematisch-Naturwissenschaftliche Fakultät / Institut für Physik und Astronomie |
| DDC classification: | 5 Naturwissenschaften und Mathematik / 53 Physik |
| Peer review: | Referiert |
