The Growth of Oligarchy in a Yard-Sale Model of Asset Exchange - A Logistic Equation for Wealth Condensation

Bruce M. Boghosian, Adrian Devitt-Lee, Hongyan Wang

Abstract

The addition of wealth-attained advantage (WAA) to the Yard-Sale Model (YSM) of asset exchange has been demonstrated to induce wealth condensation. In models of WAA for which the bias is a continuous function of the wealth difference of the transacting agents, the condensation arises from a second-order phase transition to a coexistence regime. In this paper, we present the first analytic time-dependent results for this model, by showing that the condensed wealth obeys a simple logistic equation in time.

References

  1. Angle, J. (1986). The surplus theory of social stratification and the size distribution of personal wealth. Social Forces, 65:293-326.
  2. Boghosian, B. (2014a). Fokker-planck description of wealth dynamics and the origin of pareto's law. International Journal of Modern Physics C, 25:1441008- 1441015.
  3. Boghosian, B. (2014b). Kinetics of wealth and the pareto law. Physical Review E, 89:042804-042825.
  4. Boghosian, B., Devitt-Lee, A., Johnson, M., Marcq, J., and Wang, H. (2016). Oligarchy as a phase transition: The effect of wealth-attained advantage in a fokkerplanck description of asset exchange. arXiv preprint arXiv:1511.00770v2 [physics.soc-ph].
  5. Boghosian, B., Johnson, M., and Marcq, J. (2015). An h theorem for boltzmann's equation for the yardsale model of asset exchange. Journal of Statistical Physics, 161:1339-1350.
  6. Bouchaud, J.-P. and Mézard, M. (2000). Wealth condensation in a simple model of the economy. Physica A, 282:536-545.
  7. Chakraborti, A. (2002). Distributions of money in model markets of economy. Int. J. Mod. Phys. C, 13:1315- 1321.
  8. Gibrat, R. (1931). Les Inégalités économiques. Paris: Sirey.
  9. Hardoon, D. and Ayele, S. (2016). An economy for the 1%. Technical report, Oxfam International. 210 Oxfam Briefing Paper (Oxfam Davos Report).
  10. Hayes, B. (2002). Follow the money. American Scientist, 90:400-405.
  11. Ispolatov, S., Krapivsky, P., and Redner, S. (1998). Wealth distributions in asset exchange models. The European Physical Journal B - Condensed Matter, 2:267-276.
  12. Moukarzel, C., Gonc¸alves, S., Iglesias, J., and HuertaQuintanilla, R. (2007). Wealth condensation in a multiplicative random asset exchange model. Europhys. J. Spec. Topics, 143:75-79.
  13. Pareto, V. (1965). La courbe de la repartition de la richesse. In Busino, G., editor, Oevres Completes de Vilfredo Pareto, page 15. Geneva: Librairie Droz.
  14. Uhlenbeck, G. and Ornstein, L. (1930). On the theory of brownian motion. Phys. Rev., 36:823-841.
Download


Paper Citation


in Harvard Style

Boghosian B., Devitt-Lee A. and Wang H. (2016). The Growth of Oligarchy in a Yard-Sale Model of Asset Exchange - A Logistic Equation for Wealth Condensation . In Proceedings of the 1st International Conference on Complex Information Systems - Volume 1: COMPLEXIS, ISBN 978-989-758-181-6, pages 187-193. DOI: 10.5220/0005956501870193


in Bibtex Style

@conference{complexis16,
author={Bruce M. Boghosian and Adrian Devitt-Lee and Hongyan Wang},
title={The Growth of Oligarchy in a Yard-Sale Model of Asset Exchange - A Logistic Equation for Wealth Condensation},
booktitle={Proceedings of the 1st International Conference on Complex Information Systems - Volume 1: COMPLEXIS,},
year={2016},
pages={187-193},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0005956501870193},
isbn={978-989-758-181-6},
}


in EndNote Style

TY - CONF
JO - Proceedings of the 1st International Conference on Complex Information Systems - Volume 1: COMPLEXIS,
TI - The Growth of Oligarchy in a Yard-Sale Model of Asset Exchange - A Logistic Equation for Wealth Condensation
SN - 978-989-758-181-6
AU - Boghosian B.
AU - Devitt-Lee A.
AU - Wang H.
PY - 2016
SP - 187
EP - 193
DO - 10.5220/0005956501870193