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Study of a Market Model with Conservative Exchanges on Complex Networks

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  • L. A. Braunstein
  • P. A. Macri
  • J. R. Iglesias

Abstract

Many models of market dynamics make use of the idea of conservative wealth exchanges among economic agents. A few years ago an exchange model using extremal dynamics was developed and a very interesting result was obtained: a self-generated minimum wealth or poverty line. On the other hand, the wealth distribution exhibited an exponential shape as a function of the square of the wealth. These results have been obtained both considering exchanges between nearest neighbors or in a mean field scheme. In the present paper we study the effect of distributing the agents on a complex network. We have considered archetypical complex networks: Erd\"{o}s-R\'enyi random networks and scale-free networks. The presence of a poverty line with finite wealth is preserved but spatial correlations are important, particularly between the degree of the node and the wealth. We present a detailed study of the correlations, as well as the changes in the Gini coefficient, that measures the inequality, as a function of the type and average degree of the considered networks.

Suggested Citation

  • L. A. Braunstein & P. A. Macri & J. R. Iglesias, 2012. "Study of a Market Model with Conservative Exchanges on Complex Networks," Papers 1212.1061, arXiv.org, revised Feb 2013.
    • Handle: RePEc:arx:papers:1212.1061
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    Cited by:

    1. Wang, Xiaoyang & Wang, Ying & Zhu, Lin & Li, Chao, 2016. "A novel approach to characterize information radiation in complex networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 452(C), pages 94-105.
    2. Max Greenberg & H. Oliver Gao, 2024. "Twenty-five years of random asset exchange modeling," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 97(6), pages 1-27, June.
    3. Meng, Xiangyi & Zhang, Jian-Wei & Guo, Hong, 2016. "Quantum Brownian motion model for the stock market," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 452(C), pages 281-288.

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