dorsal/arxiv
View SchemaHow the rich get richer
| Authors | Anita Mehta, A. S. Majumdar, J. M. Luck |
|---|---|
| Categories | |
| ArXiv ID | physics/0504121 |
| URL | https://arxiv.org/abs/physics/0504121 |
| Journal | pp. 199-204 in 'Econophysics of Wealth Distributions', eds. A. Chatterjee et al., Springer-Verlag Italia 2005. |
Abstract
In our model, $n$ traders interact with each other and with a central bank; they are taxed on the money they make, some of which is dissipated away by corruption. A generic feature of our model is that the richest trader always wins by 'consuming' all the others: another is the existence of a threshold wealth, below which all traders go bankrupt. The two-trader case is examined in detail,in the socialist and capitalist limits, which generalise easily to $n>2$. In its mean-field incarnation, our model exhibits a two-time-scale glassy dynamics, as well as an astonishing universality.When preference is given to local interactions in finite neighbourhoods,a novel feature emerges: instead of at most one overall winner in the system,finite numbers of winners emerge, each one the overlord of a particular region.The patterns formed by such winners (metastable states) are very much a consequence of initial conditions, so that the fate of the marketplace is ruled by its past history; hysteresis is thus also manifested.
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"abstract": "In our model, $n$ traders interact with each other and with a central bank;\nthey are taxed on the money they make, some of which is dissipated away by\ncorruption. A generic feature of our model is that the richest trader always\nwins by \u0027consuming\u0027 all the others: another is the existence of a threshold\nwealth, below which all traders go bankrupt. The two-trader case is examined in\ndetail,in the socialist and capitalist limits, which generalise easily to\n$n\u003e2$. In its mean-field incarnation, our model exhibits a two-time-scale\nglassy dynamics, as well as an astonishing universality.When preference is\ngiven to local interactions in finite neighbourhoods,a novel feature emerges:\ninstead of at most one overall winner in the system,finite numbers of winners\nemerge, each one the overlord of a particular region.The patterns formed by\nsuch winners (metastable states) are very much a consequence of initial\nconditions, so that the fate of the marketplace is ruled by its past history;\nhysteresis is thus also manifested.",
"arxiv_id": "physics/0504121",
"authors": [
"Anita Mehta",
"A. S. Majumdar",
"J. M. Luck"
],
"categories": [
"physics.soc-ph",
"q-fin.GN"
],
"journal_ref": "pp. 199-204 in \u0027Econophysics of Wealth Distributions\u0027, eds. A.\n Chatterjee et al., Springer-Verlag Italia 2005.",
"title": "How the rich get richer",
"url": "https://arxiv.org/abs/physics/0504121"
},
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