https://doi.org/10.1140/epjb/e2019-90674-0
Regular Article
Money distribution in agent-based models with position-exchange dynamics: the Pareto paradigm revisited★
1
Department of Physics, Istanbul University,
34134
Istanbul, Turkey
2
Institute for Physics & Astronomy, University of Potsdam,
14476
Potsdam-Golm, Germany
a e-mail: ekrem.aydiner@istanbul.edu.tr
Received:
15
November
2018
Received in final form:
11
February
2019
Published online: 20 May 2019
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.
Key words: Statistical and Nonlinear Physics
Supplementary material in the form of one pdf file available from the Journal web page at https://doi.org/10.1140/epjb/e2019-90674-0
© EDP Sciences / Società Italiana di Fisica / Springer-Verlag GmbH Germany, part of Springer Nature, 2019
