Wealth condensation and "corruption" in a toy model

D. Johnston, Z. Burda, J. Jurkiewicz, M. Kamiński, M. A. Nowak, G. Papp, I. Zahed

Research output: Contribution to journalArticle

Abstract

We discuss the wealth condensation mechanism in a simple toy economy in which individual agent's wealths are distributed according to a Pareto power law and the overall wealth is fixed. The observed behaviour is the manifestation of a transition which occurs in Zero Range Processes (ZRPs) or "balls in boxes" models. An amusing feature of the transition in this context is that the condensation can be induced by increasing the exponent in the power law, which one might have naively assumed penalised greater wealths more.

Original languageEnglish
Pages (from-to)2709-2717
Number of pages9
JournalActa Physica Polonica B
Volume36
Issue number9
Publication statusPublished - Sep 2005
EventConference on Applications of Random Matrices to Economy and Other Complex Systems - Cracow, Poland
Duration: 25 May 200528 May 2005

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    Johnston, D., Burda, Z., Jurkiewicz, J., Kamiński, M., Nowak, M. A., Papp, G., & Zahed, I. (2005). Wealth condensation and "corruption" in a toy model. Acta Physica Polonica B, 36(9), 2709-2717.