Wealth redistribution with finite resources

Abstract

We present a simplified model for the exploitation of finite resources by interacting agents, where each agent receives a random fraction of the available resources. An extremal dynamics ensures that the poorest agent has a chance to change its economic welfare. After a long transient, the system self-organizes into a critical state that maximizes the average performance of each participant. Our model exhibits a new kind of wealth condensation, where very few extremely rich agents are stable in time and the rest stays in the middle class.

4 pages, 3 figures, RevTeX 4 style

References in corpus (1)

• Finite market size as a source of extreme wealth inequality and market instability

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