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Money distribution in agent-based models with position-exchange dynamics: the Pareto paradigm revisited

  • Ekrem AydinerEmail author
  • Andrey G. Cherstvy
  • Ralf Metzler
Regular Article
  • 32 Downloads

Abstract

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.

Graphical abstract

Keywords

Statistical and Nonlinear Physics 

Supplementary material

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Copyright information

© EDP Sciences / Società Italiana di Fisica / Springer-Verlag GmbH Germany, part of Springer Nature 2019

Authors and Affiliations

  • Ekrem Aydiner
    • 1
    Email author
  • Andrey G. Cherstvy
    • 2
  • Ralf Metzler
    • 2
  1. 1.Department of PhysicsIstanbul UniversityIstanbulTurkey
  2. 2.Institute for Physics & Astronomy, University of PotsdamPotsdam-GolmGermany

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