The Growth of Oligarchy in a Yard-Sale Model of Asset Exchange: A Logistic Equation for Wealth Condensation

Abstract

The addition of wealth-attained advantage (WAA) to the Yard-Sale Model (YSM) of asset exchange has been demonstrated to induce wealth condensation. In a model of WAA for which the bias is a continuous function of the wealth difference of the transacting agents, the condensation was shown to arise from a second-order phase transition to a coexistence regime. In this paper, we present the first analytic time-dependent results for this model, by showing that the condensed wealth obeys a logistic equation in time.

arXiv comment15 pages, 2 figures

References in corpus (5)

• Wealth Distributions in Models of Capital Exchange
• Distributions of money in model markets of economy
• The Kinetics of Wealth and the Origin of the Pareto Law
• An $H$ theorem for Boltzmann's equation for the Yard-Sale Model of asset exchange
• Fokker-Planck Description of Wealth Dynamics and the Origin of Pareto's Law

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