How the rich get richer

dc.creatorMehta, Anita
dc.creatorMajumdar, A. S.
dc.creatorLuck, J. M.
dc.date2005-04-18
dc.date.accessioned2026-07-07T12:07:32Z
dc.date.available2026-07-07T12:07:32Z
dc.descriptionIn 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.
dc.descriptionTo appear in Proceedings of Econophys - Kolkata I: International Workshop on Econophysics of Wealth Distributions (Springer series on 'New Economic Windows')
dc.identifierhttps://arxiv.org/abs/physics/0504121
dc.identifierhttp://arxiv.org/abs/physics/0504121
dc.identifierpp. 199-204 in 'Econophysics of Wealth Distributions', eds. A. Chatterjee et al., Springer-Verlag Italia 2005.
dc.identifier.urihttp://salesiana.dossiersoluciones.com/handle/123456789/209000
dc.subjectPhysics and Society
dc.subjectGeneral Finance
dc.titleHow the rich get richer
dc.typetext

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