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. CherstvyORCiDGND, 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 |