The Inequality Process (IP) is a stochastic particle system in which particles are randomly paired for wealth exchange. A coin toss determines which particle loses wealth to the other in a randomly paired encounter. The loser gives up a fixed share of its wealth, a positive quantity. That share...

Most social scientists would reject the possibility of socio-economic analogues of the gas laws (Boyle’s and Charles’) on verisimilitude grounds. The gas laws relate the variables temperature, pressure, and volume. The possibility of socio-economic analogues of the gas laws and their...

Four economists, Mauro Gallegati, Steven Keen, Thomas Lux, and Paul Ormerod, published a paper after the 2005 Econophysics Colloquium criticizing conservative particle systems as models of income and wealth distribution. Their critique made science news: coverage in a feature article in Nature....

The Inequality Process (IP) is a particle system model similar to that of the Kinetic Theory of Gases. The IP is a parsimonious model of competition among people for wealth. The IP explains a wide scope of stable patterns in the distribution of personal income and wealth. Econophysicists have...

Economic behavior strives for efficiency. Therefore, also evolving network structures should be a result of such a goal-oriented behavior. Traditionally, networks were assumed to be only temporary phenomena, since the prevailing organizational forms that comply with the efficiency postulate are...

A concept and mathematical model of modern economics are formulated in which a company profit is defined when taking into account possible interests of individual decision makers rather than based exclusively on benefits of either the company (ground of microeconomics) or the whole society...

In many groups heterogeneous incentives induce people to make unequal contributions to a common pool. This paper studies whether people consider the random assignment of such unequal incentives as unequal opportunities and demand more egalitarian distributions of the pool. The aggregate...

The survey conducted in 2012–2013 by the State Audit Office of Hungary and its non-governmental partners examined the financial literacy, financial knowledge and risk appetite among higher education students (n=1,743), as well as the factors influencing the same. Our results show that starting...

We created a theoretical model of the main factors that influence household savings based on our secondary research, then conducted a questionnaire survey involving 4106 Hungarian households in the scope of primary research. The examined households had a low level of financial knowledge. They...

We consider an economy in which there is an infinite stream of pies, each of size one, one in every period. For each agent, the per-period utility function, which is defined on that period's consumption, is determined by the previous period's consumption. We describe specifications of this model...