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Class formation in a social network with asset exchange

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  • Montaña, Christian H. Sanabria
  • Huerta-Quintanilla, Rodrigo
  • Rodríguez-Achach, Manuel

Abstract

We study two kinds of economic exchanges, additive and multiplicative, in a system of N agents. The work is divided into two parts. In the first one, the agents are free to interact with each other. The system evolves to a Boltzmann–Gibbs distribution with additive exchange and condenses with a multiplicative one. If bankruptcy is introduced, both types of exchange lead to condensation. Condensation times have been studied. In the second part, the agents are placed in a social network. We analyze the behavior of wealth distributions in time, and the formation of economic classes is observed for certain values of network connectivity.

Suggested Citation

  • Montaña, Christian H. Sanabria & Huerta-Quintanilla, Rodrigo & Rodríguez-Achach, Manuel, 2011. "Class formation in a social network with asset exchange," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 390(2), pages 328-340.
    • Handle: RePEc:eee:phsmap:v:390:y:2011:i:2:p:328-340
    DOI: 10.1016/j.physa.2010.10.008
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    References listed on IDEAS

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    1. Vega-Redondo,Fernando, 2007. "Complex Social Networks," Cambridge Books, Cambridge University Press, number 9780521674096.
    2. Vega-Redondo,Fernando, 2007. "Complex Social Networks," Cambridge Books, Cambridge University Press, number 9780521857406.
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