Weighted Trade Network in a Model of Preferential Bipartite Transactions

Abstract

Using a model of wealth distribution where traders are characterized by quenched random saving propensities and trade among themselves by bipartite transactions, we mimic the enhanced rates of trading of the rich by introducing the preferential selection rule using a pair of continuously tunable parameters. The bipartite trading defines a growing trade network of traders linked by their mutual trade relationships. With the preferential selection rule this network appears to be highly heterogeneous characterized by the scale-free nodal degree and the link weight distributions and presents signatures of non-trivial strength-degree correlations. With detailed numerical simulations and using finite-size scaling analysis we present evidence that the associated critical exponents are continuous functions of the tuning parameters. However the wealth distribution has been observed to follow the well-known Pareto law robustly for all positive values of the tuning parameters.

8 pages, 7 figures

References in corpus (5)

• Colloquium: Statistical mechanics of money, wealth, and income
• The International Trade Network: weighted network analysis and modelling
• Kinetic Exchange Models for Income and Wealth Distributions
• Generic features of the wealth distribution in ideal-gas-like markets
• Modeling wealth distribution in growing markets

Cited by in corpus (13)

• Degree distributions of bipartite networks and their projections
• Bow-tie structure and community identification of global supply chain network
• Agent dynamics in kinetic models of wealth exchange
• Characterization of the community structure in a large-scale production network in Japan
• A threshold induced phase transition in the kinetic exchange models
• Equilibrium distributions and relaxation times in gas-like economic models: an analytical derivation
• Follow the Leader: Herding Behavior in Heterogeneous Populations
• Agent based models for wealth distribution with preference in interaction
• Antipersistent dynamics in kinetic models of wealth exchange
• A poor agent and subsidy: an investigation through CCM model
• Conservative self-organized extremal model for wealth distribution
• A Survey of Evolving Models for Weighted Complex Networks based on their Dynamics and Evolution
• Econophysics Through Computation