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Wealth concentration in systems with unbiased binary exchanges

Author

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  • Cardoso, Ben-Hur Francisco
  • Iglesias, José Roberto
  • Gonçalves, Sebastián

Abstract

To describe the wealth distribution evolution, several models consider an ensemble of interacting economic agents that exchange wealth in a binary fashion. Intriguingly, models that consider an unbiased market, i.e., giving each agent the same chances to win, are always out of equilibrium until they attain the perfect inequality at the final state. Here, we present a rigorous analytical demonstration that any system driven by unbiased binary exchanges is doomed to reach perfect inequality and zero mobility.

Suggested Citation

  • Cardoso, Ben-Hur Francisco & Iglesias, José Roberto & Gonçalves, Sebastián, 2021. "Wealth concentration in systems with unbiased binary exchanges," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 579(C).
    • Handle: RePEc:eee:phsmap:v:579:y:2021:i:c:s0378437121003964
    DOI: 10.1016/j.physa.2021.126123
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    References listed on IDEAS

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    1. Slanina, Frantisek, 2013. "Essentials of Econophysics Modelling," OUP Catalogue, Oxford University Press, number 9780199299683.
    2. Sen, Amartya, 1997. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198292975.
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    Cited by:

    1. Francisco Cardoso, Ben-Hur & Gonçalves, Sebastián & Iglesias, José Roberto, 2023. "Why equal opportunities lead to maximum inequality? The wealth condensation paradox generally solved," Chaos, Solitons & Fractals, Elsevier, vol. 168(C).

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