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Wealth redistribution with finite resources

S. Pianegonda·J. R. Iglesias·G. Abramson·J. L. Vega
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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.

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S. Pianegonda, J. R. Iglesias, G. Abramson, J. L. Vega. 2001-09-14. Wealth redistribution with finite resources. https://doi.org/10.1016/s0378-4371(02)01737-5

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