A Model of the Distribution of Wealth in Society

H. Lavička, F. Slanina

Abstract


A model of the distribution of wealth in society will be presented. The model is based on an agent-based Monte Carlo simulation where interaction (exchange of wealth) is allowed along the edges of a small-world network. The interaction is like inelastic scattering and it is characterized by two constants. Simulations of the model show that the distribution behaves as a power-law and it agrees with results of Pareto. 

Keywords


Pareto’s law; economics; scattering

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ISSN 1210-2709 (Print)
ISSN 1805-2363 (Online)
Published by the Czech Technical University in Prague