Wealth Distributions in Asset Exchange Models
How do individuals accumulate wealth as they interact economically? We outline the consequences of a simple microscopic model in which repeated pairwise exchanges of assets between individuals build the wealth distribution of a population. This distribution is determined for generic exchange rules --- transactions that involve a fixed amount or a fixed fraction of individual wealth, as well as random or greedy exchanges. In greedy multiplicative exchange, a continuously evolving power law wealth distribution arises, a feature that qualitatively mimics empirical observations.
Year of publication: |
2010-06
|
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Authors: | Krapivsky, P. L. ; Redner, S. |
Institutions: | arXiv.org |
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