Exploring the impact of multi-agent wealth exchange model on inequality reduction

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1. Verfasser: Banerjee, Suchismita
Format: Preprint
Veröffentlicht: 2025
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author Banerjee, Suchismita
author_facet Banerjee, Suchismita
contents Binary kinetic exchange models, where money is shuffled between two agents at a time, reproduce the Boltzmann Gibbs exponential wealth distribution but cannot address the multi party trades common in real markets. We generalize the exchange rule to simultaneous interactions among more than two agents in a closed economical system. We observe, as number of agents grow, the stationary wealth distribution evolves smoothly from an exponential to an almost uniform distribution. Inequality metrics (Gini and k index) has been found to fall monotonically with the increase in agents number. Compared with binary models that rely on saving propensities, which is also known to reduce inequality, we find the multi agent interaction show a completely different behavior of inequality reduction.
format Preprint
id arxiv_https___arxiv_org_abs_2510_17420
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Exploring the impact of multi-agent wealth exchange model on inequality reduction
Banerjee, Suchismita
Physics and Society
Binary kinetic exchange models, where money is shuffled between two agents at a time, reproduce the Boltzmann Gibbs exponential wealth distribution but cannot address the multi party trades common in real markets. We generalize the exchange rule to simultaneous interactions among more than two agents in a closed economical system. We observe, as number of agents grow, the stationary wealth distribution evolves smoothly from an exponential to an almost uniform distribution. Inequality metrics (Gini and k index) has been found to fall monotonically with the increase in agents number. Compared with binary models that rely on saving propensities, which is also known to reduce inequality, we find the multi agent interaction show a completely different behavior of inequality reduction.
title Exploring the impact of multi-agent wealth exchange model on inequality reduction
topic Physics and Society
url https://arxiv.org/abs/2510.17420