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Optimal control about multi-agent wealth exchange and decision-making competence

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  • Wang, Lingling
  • Lai, Shaoyong
  • Sun, Rongmei

Abstract

A kinetic model, describing the influence of decision-making competence in evolution of wealth for a multi-agent system with feedback control, is investigated. The control term is analyzed by the minimization of a quadratic cost functional, which aims to decrease the wealth gap between agents. The constant saving propensities and diffusion coefficients in the model are modified as functions of wealth and decision competence, respectively. In our micro binary wealth exchange model, an extra risk shared by all agent is discussed, which increases the inequality of wealth distribution. The main macro properties of the kinetic model and the marginal distributions of wealth and decision-making competence are considered through several examples. Our results illustrate that the disequilibrium of decision-making competence is one of the reasons to increase wealth inequality.

Suggested Citation

  • Wang, Lingling & Lai, Shaoyong & Sun, Rongmei, 2022. "Optimal control about multi-agent wealth exchange and decision-making competence," Applied Mathematics and Computation, Elsevier, vol. 417(C).
    • Handle: RePEc:eee:apmaco:v:417:y:2022:i:c:s0096300321008547
    DOI: 10.1016/j.amc.2021.126772
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    References listed on IDEAS

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