IDEAS home Printed from https://ideas.repec.org/a/spr/eurphb/v96y2023i9d10.1140_epjb_s10051-023-00579-y.html
   My bibliography  Save this article

Universal Pareto laws in agent-based exchange models: debt and varying initial-money distributions

Author

Listed:
  • Ekrem Aydiner

    (Istanbul University
    Humboldt-Universität zu Berlin)

  • Andrey G. Cherstvy

    (University of Potsdam)

  • Ralf Metzler

    (University of Potsdam)

  • Igor M. Sokolov

    (Humboldt-Universität zu Berlin
    IRIS Adlershof)

Abstract

We examine by Monte-Carlo simulations the behavior of a kinetic exchange-trading model for various initial distributions of money in the system of agents. Our goal is to analyze the characteristics of the Pareto laws for the long-time money distribution, in both closed and open systems. We consider three different initial distributions for these two situations. We first briefly summarize the concepts and results of some agent-based money-exchange models. Then, via employing the Monte-Carlo computer simulations, for both types of systems we obtain the long-time money distributions for the initially homogeneous or constant, for positive random, and finally, for both positive and negative random distributions of money among the agents. We conclude that the Pareto laws and their exponents remained nearly the same in all these situations showing little sensitivity to the initial conditions imposed. Graphic abstract

Suggested Citation

  • Ekrem Aydiner & Andrey G. Cherstvy & Ralf Metzler & Igor M. Sokolov, 2023. "Universal Pareto laws in agent-based exchange models: debt and varying initial-money distributions," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 96(9), pages 1-9, September.
    • Handle: RePEc:spr:eurphb:v:96:y:2023:i:9:d:10.1140_epjb_s10051-023-00579-y
    DOI: 10.1140/epjb/s10051-023-00579-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1140/epjb/s10051-023-00579-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1140/epjb/s10051-023-00579-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chakrabarti,Bikas K. & Chakraborti,Anirban & Chakravarty,Satya R. & Chatterjee,Arnab, 2013. "Econophysics of Income and Wealth Distributions," Cambridge Books, Cambridge University Press, number 9781107013445.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kiran Sharma & Subhradeep Das & Anirban Chakraborti, 2017. "Global Income Inequality and Savings: A Data Science Perspective," Papers 1801.00253, arXiv.org, revised Aug 2018.
    2. Hutzler, S. & Sommer, C. & Richmond, P., 2016. "On the relationship between income, fertility rates and the state of democracy in society," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 452(C), pages 9-18.
    3. Venkatasubramanian, Venkat & Luo, Yu & Sethuraman, Jay, 2015. "How much inequality in income is fair? A microeconomic game theoretic perspective," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 435(C), pages 120-138.
    4. Maia, Adriano & Matsushita, Raul & Demarcus, Antonio & Da Silva, Sergio, 2023. "Scalability in a two-class interoccupational earnings distribution model," SocArXiv 23brg, Center for Open Science.
    5. Ion Santra, 2022. "Effect of tax dynamics on linearly growing processes under stochastic resetting: a possible economic model," Papers 2202.13713, arXiv.org.
    6. Smerlak, Matteo, 2016. "Thermodynamics of inequalities: From precariousness to economic stratification," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 441(C), pages 40-50.
    7. Eliazar, Iddo, 2017. "Inequality spectra," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 469(C), pages 824-847.
    8. Ghosh, Asim & Chakrabarti, Bikas K., 2021. "Limiting value of the Kolkata index for social inequality and a possible social constant," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 573(C).
    9. Jacques Tempere, 2018. "An equilibrium-conserving taxation scheme for income from capital," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 91(2), pages 1-6, February.
    10. Aur'elien Hazan, 2017. "Stock-flow consistent macroeconomic model with nonuniform distributional constraint," Papers 1708.00645, arXiv.org.
    11. Kayser, Kirk & Armbruster, Dieter, 2019. "Social optima of need-based transfers," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 536(C).
    12. Istvan Gere & Szabolcs Kelemen & Geza Toth & Tamas Biro & Zoltan Neda, 2021. "Wealth distribution in modern societies: collected data and a master equation approach," Papers 2104.04134, arXiv.org.
    13. Yong Tao & Xiangjun Wu & Tao Zhou & Weibo Yan & Yanyuxiang Huang & Han Yu & Benedict Mondal & Victor M. Yakovenko, 2019. "Exponential structure of income inequality: evidence from 67 countries," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 14(2), pages 345-376, June.
    14. Kiran Sharma & Parul Khurana, 2021. "Growth and dynamics of Econophysics: a bibliometric and network analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(5), pages 4417-4436, May.
    15. Eliazar, Iddo, 2015. "The sociogeometry of inequality: Part II," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 426(C), pages 116-137.
    16. Mukherjee, Sudip & Biswas, Soumyajyoti & Chatterjee, Arnab & Chakrabarti, Bikas K., 2021. "The Ising universality class of kinetic exchange models of opinion dynamics," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 567(C).
    17. Anirban Chakraborti & Damien Challet & Arnab Chatterjee & Matteo Marsili & Yi-Cheng Zhang & Bikas K. Chakrabarti, 2013. "Statistical Mechanics of Competitive Resource Allocation using Agent-based Models," Papers 1305.2121, arXiv.org, revised Sep 2014.
    18. Sergey Rashkovskiy, 2020. "Thermodynamics of markets," Papers 2010.10260, arXiv.org.
    19. Costas J. Efthimiou & Adam Wearne, 2016. "Household income distribution in the USA," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 89(3), pages 1-6, March.
    20. D. S. Quevedo & C. J. Quimbay, 2019. "Piketty's second fundamental law of capitalism as an emergent property in a kinetic wealth-exchange model of economic growth," Papers 1903.00952, arXiv.org, revised Mar 2019.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:eurphb:v:96:y:2023:i:9:d:10.1140_epjb_s10051-023-00579-y. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.