Dr Marco Patriarca, Estońska Akademia Nauk, Talinn

Kinetic wealth exchange models and a variational principle for the Pareto power law

Gość zaproszony przez prof. Andrzeja Pękalskiego Typically, complex systems are made of relatively simple units, from which a highly organized behavior of the system emerges. In the case of economy, the building blocks - humans performing economical activities - are not simple entities, however, in a certain pproximation we can still model them as simple irrational agents. One possibility to model a closed economy systems is to use the kinetic wealth-exchange models (KWEM), independently introduced in different fields such as socialciences, economics and (econo)physics. We discuss how diversifying the agents of KWEMs can produce a power law in the wealth distribution. The underlying mechanism is illustrated through a mechanical analogy, in which the effective number of degrees of freedom is diversified. The mechanism proposed for the appearance of power law distributions can be in action in various complex systems.