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Wealth condensation in a Barabasi–Albert network

Author

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  • Vázquez-Montejo, J.
  • Huerta-Quintanilla, R.
  • Rodríguez-Achach, M.

Abstract

We study the flow of money among agents in a Barabasi–Albert (BA) scale free network, where each network node represents an agent and money exchange interactions are established through links. The system allows money trade between two agents at a time, betting a fraction f of the poorer’s agent wealth. We also allow for the bet to be biased, giving the poorer agent a winning probability p. In the no network case there is a phase transition involving a relationship between p and f. In the networked case, we also found a condensation interface, however, this is not a complete condensation due to the presence of clusters in the network and its topology. As can be expected, the winner is always a well-connected agent, but we also found that the mean wealth decreases with the agents’ connectivity.

Suggested Citation

  • Vázquez-Montejo, J. & Huerta-Quintanilla, R. & Rodríguez-Achach, M., 2010. "Wealth condensation in a Barabasi–Albert network," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 389(7), pages 1464-1470.
    • Handle: RePEc:eee:phsmap:v:389:y:2010:i:7:p:1464-1470
    DOI: 10.1016/j.physa.2009.12.013
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    References listed on IDEAS

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    1. Z. M. Berrebi & Jacques Silber, 1985. "Income Inequality Indices and Deprivation: A Generalization," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(3), pages 807-810.
    2. Sitabhra Sinha, 2005. "The Rich Are Different!: Pareto Law from asymmetric interactions in asset exchange models," Papers physics/0504197, arXiv.org.
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