On the origins of extreme wealth inequality in the Talent vs Luck Model

@article{Challet2020OnTO,
  title={On the origins of extreme wealth inequality in the Talent vs Luck Model},
  author={D. Challet and A. Pluchino and A. E. Biondo and Andrea Rapisarda},
  journal={Advances in Complex Systems},
  year={2020},
  volume={23},
  pages={2050004}
}
  • D. Challet, A. Pluchino, +1 author Andrea Rapisarda
  • Published 2020
  • Economics, Mathematics, Physics
  • Advances in Complex Systems
  • We introduce a simplified version (STvL) of the Talent versus Luck (TvL) model where only lucky events are present and verify that its dynamical rules lead to the same very large wealth inequality as the original model. We also derive some analytical approximations aimed to capture the mechanism responsible for the creation of such wealth inequality from a Gaussian-distributed talent. Under these approximations, our analysis is able to reproduce quite well the results of the numerical… CONTINUE READING

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