Agent based models for wealth distribution with preference in interaction

Goswami, Sanchari; Sen, Parongama

doi:10.1016/j.physa.2014.08.018

Cited by 8 publications

(8 citation statements)

References 35 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Thus, each transaction in the model involves the same amount of assets, and therefore, a constant payoff is justified. Although it might seem that such a mechanism is similar to preferential treatment of some agents as in other models e.g., [ 25 ], we will show in the following section that it is not in the case of this model. The payoff r was typically set to

.…”

Section: Modelmentioning

confidence: 70%

A Simple Mechanism Causing Wealth Concentration

Cieśla

Snarska

2020

Entropy

View full text Add to dashboard Cite

We study mechanisms leading to wealth condensation. As a natural starting point, our model adopts a neoclassical point of view, i.e., we completely ignore work, production, and productive relations, and focus only on bilateral link between two randomly selected agents. We propose a simple matching process with deterministic trading rules and random selection of trading agents. Furthermore, we also neglect the internal characteristic of traded goods and analyse only the relative wealth changes of each agent. This is often the case in financial markets, where a traded good is money itself in various forms and various maturities. We assume that agents trade according to the rules of utility and decision theories. Agents possess incomplete knowledge about market conditions, but the market is in equilibrium. We show that these relatively frugal assumptions naturally lead to a wealth condensation. Moreover, we discuss the role of wealth redistribution in such a model.

show abstract

.…”

Section: Modelmentioning

confidence: 70%

A Simple Mechanism Causing Wealth Concentration

Cieśla

Snarska

2020

Entropy

View full text Add to dashboard Cite

show abstract

“…Damaceanu (2008) presented a model of wealth distribution as a function of resource growth interval stressing the importance of renewable resources. Later, a model was presented that simulates the impact of agents' preferences on wealth distribution in choosing other agents for interaction (Goswami & Sen, 2014). Impullitti & Rebmann (2002) studied agents' and environment's general attributes like initial wealth, agents' vision and spatial concentration of agents for their impact on wealth distribution patterns.…”

Section: Background Theorymentioning

confidence: 99%

Can Zakat Charity Help Reduce Economic Inequality?

Jaffer

2020

iconz

View full text Add to dashboard Cite

Purpose – This paper suggests an agent based model of economic behavior based on which it argues that the Islamic charity of Zakat can be rationalized as it significantly reduces wealth inequalities. Design/methodology/approach – An Agent Based Model (ABM) of wealth distribution (Wilensky, 1998) is configured to introduce Zakat in the model. Simulations were run in the model with ordered and random distribution of Zakat charity and wealth distribution pattern compared with the standard simulation without Zakat. Findings – The impact of this very small charity on the part of the rich (2.5% of net wealth) showed significant impact on wealth distribution pattern as it changed the power law distribution into normal distribution of wealth. Practical implications – The results emphasize non-conventional handling of the economic problem of poverty and wealth signifying the importance of faith based policing Originality/value – The paper contributes an agent based simulation which is a relatively newer technique to study human behavior and is commensurate to complexity theory. Its use is relatively rare in Islamic Economics and the paper is the first to propose a decentralzied model simulation of Islamic charity of Zakat.

show abstract

“…Wealth distribution, which also appears in many agent based simulations is a particularly complex issue due to its interdisciplinary nature [3] where modeling research aims to understand how different social and economic factors influence wealth inequalities. For instance, the impact of technology on wealth distribution from an industrial perspective where technological advances affect productivity and employment was investigated in one of these models [2].…”

Section: Related Literaturementioning

confidence: 99%

Agent-Based Co-Modeling of Information Society and Wealth Distribution

Yahyaoui¹,

Tkiouat²

2018

ijacsa

View full text Add to dashboard Cite

With empirical studies suggesting that information technology influence wealth distribution in different ways, and with economic interactions and information technology adoption being two complex phenomena, there is a need for simulation approach that addresses the whole complexity of the issue without being too costly in terms of computations and without ignoring relevant empirical facts in defining the behavior of different agents.. While this problem seems to require a bottomup approach using agent-based modeling, further complexity levels in managing the heterogeneous agents in space and time and an appropriate separation in domain areas show its limitations in practice. In this paper we illustrate the use of novel multi-level agent based concepts on this socioeconomic issue, by considering our studied phenomenon as an interference of multiple simple other phenomena, namely a basic producer/consumer economy and a diffusion of information model. Such an approach involves writing models following a formalism allowing compatibility and exchange of variables, in addition to implementing appropriate synchronization algorithms. Our simulation used Levelspace, a recent extension project of Netlogo simulation tool combined with data exploration tools but the patterns described are generic and can be implemented in other simulation tools. Indeed, our case study offers a building block for a framework that can investigate wealth dynamics and other analogue cases with influence between models. Our approach successfully validates against empirical macro-trends in the distribution of wealth and other social patterns. Thanks to its flexibility in conducting experiments, we could reduce the hypotheses that restricted previous models from conducting a multi-dimensional analysis for the Gini index and enabled solving conflicting research issues.

show abstract

Agent based models for wealth distribution with preference in interaction

Cited by 8 publications

References 35 publications

A Simple Mechanism Causing Wealth Concentration

A Simple Mechanism Causing Wealth Concentration

Can Zakat Charity Help Reduce Economic Inequality?

Agent-Based Co-Modeling of Information Society and Wealth Distribution

Contact Info

Product

Resources

About