Role of volatility mixing in wealth condensation transition
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arXiv
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| Autori principali: | , , |
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| Natura: | Preprint |
| Pubblicazione: |
2026
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| _version_ | 1866914478924234752 |
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| author | Hur, Jaeseok Ha, Meesoon Jeong, Hawoong |
| author_facet | Hur, Jaeseok Ha, Meesoon Jeong, Hawoong |
| contents | We study the role of heterogeneous volatility in a networked wealth dynamics model and its impact on the wealth condensation transition. Extending the Bouchaud--M{é}zard framework, we introduce binary volatility in networks and investigate how its configuration affects the effective power-law tail exponent of the wealth distribution. Using a stochastic block model, we control the mixing between volatility groups and show that the effective exponent is governed not only by the global parameter $Λ=2J/β^2$ but also by the volatility configuration in the network. We find that local interactions between nodes with different volatility induce a neutralization of group-wise exponents, which lowers the aggregate tail exponent and can drive a condensation transition across $γ_{\rm c}=2$. Our results identify volatility mixing as another control mechanism for wealth condensation and highlight the importance of noise heterogeneity in nonequilibrium systems on networks. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2604_13885 |
| institution | arXiv |
| publishDate | 2026 |
| record_format | arxiv |
| spellingShingle | Role of volatility mixing in wealth condensation transition Hur, Jaeseok Ha, Meesoon Jeong, Hawoong Statistical Mechanics Physics and Society We study the role of heterogeneous volatility in a networked wealth dynamics model and its impact on the wealth condensation transition. Extending the Bouchaud--M{é}zard framework, we introduce binary volatility in networks and investigate how its configuration affects the effective power-law tail exponent of the wealth distribution. Using a stochastic block model, we control the mixing between volatility groups and show that the effective exponent is governed not only by the global parameter $Λ=2J/β^2$ but also by the volatility configuration in the network. We find that local interactions between nodes with different volatility induce a neutralization of group-wise exponents, which lowers the aggregate tail exponent and can drive a condensation transition across $γ_{\rm c}=2$. Our results identify volatility mixing as another control mechanism for wealth condensation and highlight the importance of noise heterogeneity in nonequilibrium systems on networks. |
| title | Role of volatility mixing in wealth condensation transition |
| topic | Statistical Mechanics Physics and Society |
| url | https://arxiv.org/abs/2604.13885 |