Emergent Inequalities in a Primitive Agent-Based Good-Exchange Model

Fuente: arXiv
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Autori principali: Patil, Nirbhay, Bouchaud, Jean-Philippe
Natura: Preprint
Pubblicazione: 2024
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author Patil, Nirbhay
Bouchaud, Jean-Philippe
author_facet Patil, Nirbhay
Bouchaud, Jean-Philippe
contents Rising inequalities around the globe bring into question our economic systems and the origin of such inequalities. Here we propose a toy agent-based model where each entity is simultaneously producing and consuming indivisible goods. We find that the system exhibits a non-trivial phase transition beyond which a market clearing equilibrium exists but becomes dynamically unreachable. When production capacity exceeds a threshold and adapts too slowly, some agents cannot sell all their goods. This leads to global price deflation and induces strong wealth inequalities, with the spontaneous separation of the population into a rich class and a poor class. We explore ways to alleviate poverty in this model and whether they have real life significance.
format Preprint
id arxiv_https___arxiv_org_abs_2405_18116
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Emergent Inequalities in a Primitive Agent-Based Good-Exchange Model
Patil, Nirbhay
Bouchaud, Jean-Philippe
Disordered Systems and Neural Networks
Physics and Society
Rising inequalities around the globe bring into question our economic systems and the origin of such inequalities. Here we propose a toy agent-based model where each entity is simultaneously producing and consuming indivisible goods. We find that the system exhibits a non-trivial phase transition beyond which a market clearing equilibrium exists but becomes dynamically unreachable. When production capacity exceeds a threshold and adapts too slowly, some agents cannot sell all their goods. This leads to global price deflation and induces strong wealth inequalities, with the spontaneous separation of the population into a rich class and a poor class. We explore ways to alleviate poverty in this model and whether they have real life significance.
title Emergent Inequalities in a Primitive Agent-Based Good-Exchange Model
topic Disordered Systems and Neural Networks
Physics and Society
url https://arxiv.org/abs/2405.18116