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The wealth repartition law in an altruistic society

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  • Trigaux, Richard

Abstract

Econophysics and economy simulations claim to have demonstrated that the repartition of wealth in every economic system always occur in a very inegalitarian mathematical law, called the Pareto law. As this inegalitarian repartition is a cause of many problems in the world, it would be interesting to find a remedy. We can note that the econophysic studies always start from the hypothesis as what economy systems are formed only of agents perfectly egocentric, each seeking only to gather the maximum of wealth for himself. Should the Pareto law come only of this limiting hypothesis? And if agents had other types of behaviours, for instance altruistic? This study is based on a simple simulation where we can program various rates of altruism and egocentrism. Really we can check that a much more egalitarian repartition appears, even with a relatively low rate of altruism (15%). More so, this egalitarian repartition occurs according to a completely different law from that of Pareto: a Gauss law, a bell curve.

Suggested Citation

  • Trigaux, Richard, 2005. "The wealth repartition law in an altruistic society," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 348(C), pages 453-464.
    • Handle: RePEc:eee:phsmap:v:348:y:2005:i:c:p:453-464
    DOI: 10.1016/j.physa.2004.09.028
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    References listed on IDEAS

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    1. A. Drăgulescu & V.M. Yakovenko, 2001. "Evidence for the exponential distribution of income in the USA," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 20(4), pages 585-589, April.
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    Cited by:

    1. Josip Stepanic & Hrvoje Stefancic & Vinko Zlatic, 2006. "Social Free Energy of a Pareto-Like Resource Distribution," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 4(2), pages 136-143.
    2. Bagatella-Flores, N. & Rodríguez-Achach, M. & Coronel-Brizio, H.F. & Hernández-Montoya, A.R., 2015. "Wealth distribution of simple exchange models coupled with extremal dynamics," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 417(C), pages 168-175.
    3. N. Bagatella-Flores & M. Rodriguez-Achach & H. F. Coronel-Brizio & A. R. Hernandez-Montoya, 2014. "Wealth distribution of simple exchange models coupled with extremal dynamics," Papers 1407.7153, arXiv.org.
    4. Salvador Pueyo, 2014. "Ecological Econophysics for Degrowth," Sustainability, MDPI, vol. 6(6), pages 1-53, May.
    5. Sebastian Guala, 2009. "Taxes in a Wealth Distribution Model by Inelastically Scattering of Particles," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 7(1), pages 1-7.

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