dorsal/arxiv
View SchemaThe distribution of wealth in the presence of altruism for simple economic models
| Authors | M. Rodriguez-Achach, R. Huerta-Quintanilla |
|---|---|
| Categories | |
| ArXiv ID | physics/0507093 |
| URL | https://arxiv.org/abs/physics/0507093 |
| DOI | 10.1016/j.physa.2005.07.001 |
Abstract
We study the effect of altruism in two simple asset exchange models: the yard sale model (winner gets a random fraction of the poorer player's wealth) and the theft and fraud model (winner gets a random fraction of the loser's wealth). We also introduce in these models the concept of bargaining efficiency, which makes the poorer trader more aggressive in getting a favorable deal thus augmenting his winning probabilities. The altruistic behavior is controlled by varying the number of traders that behave altruistically and by the degree of altruism that they show. The resulting wealth distribution is characterized using the Gini index. We compare the resulting values of the Gini index at different levels of altruism in both models. It is found that altruistic behavior does lead to a more equitable wealth distribution but only for unreasonable high values of altruism that are difficult to expect in a real economic system.
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"abstract": "We study the effect of altruism in two simple asset exchange models: the yard\nsale model (winner gets a random fraction of the poorer player\u0027s wealth) and\nthe theft and fraud model (winner gets a random fraction of the loser\u0027s\nwealth). We also introduce in these models the concept of bargaining\nefficiency, which makes the poorer trader more aggressive in getting a\nfavorable deal thus augmenting his winning probabilities. The altruistic\nbehavior is controlled by varying the number of traders that behave\naltruistically and by the degree of altruism that they show. The resulting\nwealth distribution is characterized using the Gini index. We compare the\nresulting values of the Gini index at different levels of altruism in both\nmodels. It is found that altruistic behavior does lead to a more equitable\nwealth distribution but only for unreasonable high values of altruism that are\ndifficult to expect in a real economic system.",
"arxiv_id": "physics/0507093",
"authors": [
"M. Rodriguez-Achach",
"R. Huerta-Quintanilla"
],
"categories": [
"physics.soc-ph",
"q-fin.GN"
],
"doi": "10.1016/j.physa.2005.07.001",
"title": "The distribution of wealth in the presence of altruism for simple economic models",
"url": "https://arxiv.org/abs/physics/0507093"
},
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