# Wealth distributions in asset exchange models

@article{Ispolatov1998WealthDI, title={Wealth distributions in asset exchange models}, author={S. Ispolatov and Paul L. Krapivsky and Sidney Redner}, journal={The European Physical Journal B - Condensed Matter and Complex Systems}, year={1998}, volume={2}, pages={267-276} }

Abstract:A model for the evolution of the wealth distribution in an economically interacting population is introduced, in which a specified amount of assets are exchanged between two individuals when they interact. The resulting wealth distributions are determined for a variety of exchange rules. For “random” exchange, either individual is equally likely to gain in a trade, while “greedy” exchange, the richer individual gains. When the amount of asset traded is fixed, random exchange leads to a…

## Figures from this paper

## 213 Citations

The Rich Are Different ! Pareto Law from Asymmetric Interactions in Asset Exchange Models

- Economics, Physics
- 2005

It is known that asset exchange models with symmetric interaction between agents show either a Gibbs/log-normal distribution of assets among the agents or condensation of the entire wealth in the…

Multiplicative asset exchange with arbitrary return distributions

- Mathematics, Economics
- 2011

The conservative wealth-exchange process derived from trade interactions is modeled as a multiplicative stochastic transference of value, where each interaction multiplies the wealth of the poorest…

Wealth condensation in a multiplicative random asset exchange model

- Mathematics
- 2007

Abstract.
Random Asset Exchange (RAE) models, despite a number of simplifying
assumptions, serve the purpose of establishing direct relationships between
microscopic exchange mechanisms and…

Modeling wealth distribution in growing markets

- Economics, Physics
- 2008

Abstract.We introduce an auto-regressive model which captures the growing nature of realistic markets. In our model agents do not trade with other agents, they interact indirectly only through a…

Analysis of wealth inequality with a random money transfer model

- Mathematics
- 2018

Increasing gap in wealth distribution is among the key issues that have been discussed worldwide in recent years. In this paper, we use the money transfer model to explain the formation of wealth…

A Stochastic Model of Wealth Distribution

- Economics, Physics
- 2005

A major research focus in economics and econophysics is on the distribution of wealth in societies at different stages of development. Wealth includes money, material goods and assets of different…

Population and Asset Distributions in Economically Competitive Activities: a Rate-Equation Approach

- Mathematics
- 2004

We introduce a simple asset migration model for the wealth redistribution in economical activities, in which a unit of asset migrates from one individual to another whenever they interact. By means…

## References

SHOWING 1-10 OF 57 REFERENCES

Theory Of Financial Risk And Derivative Pricing

- Economics, Business
- 2000

Risk control and derivative pricing have become of major concern to financial institutions, and there is a real need for adequate statistical tools to measure and anticipate the amplitude of the…

The Economy as an Evolving Complex System II

- Economics
- 1988

* Introduction W.B. Arthur, S.N., Durlauf, and D. Lane * Asset Pricing Under Endogenous Expectations in an Artificial Stock Market W.B. Arthur, J.H. Holland, B. LeBaron, R. Palmer, and P. Tayler *…

Diffusion processes and their sample paths

- Mathematics
- 1996

Prerequisites.- 1. The standard BRownian motion.- 1.1. The standard random walk.- 1.2. Passage times for the standard random walk.- 1.3. Hin?in's proof of the de Moivre-laplace limit theorem.- 1.4.…

Stochastic Interacting Systems: Contact, Voter and Exclusion Processes

- Economics
- 1999

thomas m liggett. stochastic interacting systems contact voter and. new approach of financial volatility duration dynamics by. stochastic interacting systems contact voter and. stochastic interacting…

Origins of Order: self-organization and selection in evolution

- Biology, Computer Science
- 1991

The structure of rugged fitness landscapes and the structure of adaptive landscapes underlying protein evolution, and the architecture of genetic regulatory circuits and its evolution.

Advanced Mathematical Methods For Scientists And Engineers

- Mathematics
- 1978

This book gives a self-contained presentation of the methods of asymptotics and perturbation theory, methods useful for obtaining approximate analytical solutions to differential and difference…

Physics Today.

- MedicineApplied optics
- 1966

Using a combination of x-ray diffraction and electron diffraction, the scientists produced a three-dimensional map of the hybridized "orbital hole" bonding copper with neighboring oxygen atoms in cuprite (Cu2O).

How nature works: The science of self-organized criticality

- Computer ScienceComplex.
- 1997

His ruthless simplifications of geology, evolution, and neurology pay off because his models describe behavior that is common across these domains, and this universality means that trampling across others turf is not only acceptable, but almost mandatory, if the underlying principles are to be exposed.