Study of a market model with conservative exchanges on complex networks

Many models of market dynamics make use of the idea of conservative wealth exchanges among economic agents. A few years ago an exchange model using extremal dynamics was developed and a very interesting result was obtained: a self-generated minimum wealth or poverty line. On the other hand, the wealth distribution exhibited an exponential shape as a function of the square of the wealth. These results have been obtained both considering exchanges between nearest neighbors or in a mean field scheme. In the present paper we study the effect of distributing the agents on a complex network. We have considered archetypical complex networks: Erdös–Rényi random networks and scale-free networks. The presence of a poverty line with finite wealth is preserved but spatial correlations are important, particularly between the degree of the node and the wealth. We present a detailed study of the correlations, as well as the changes in the Gini coefficient, that measures the inequality, as a function of the type and average degree of the considered networks.     

Gamma-distribution and wealth inequality

We discuss the equivalence between kinetic wealth-exchange models, in which agents exchange wealth during trades, and mechanical models of particles, exchanging energy during collisions. The universality of the underlying dynamics is shown both through a variational approach based on the minimization of the Boltzmann entropy and a microscopic analysis of the collision dynamics of molecules in a gas. In various relevant cases, the equilibrium distribution is well-approximated by a gamma-distribution with suitably defined temperature and number of dimensions. This in turn allows one to quantify the inequalities observed in the wealth distributions and suggests that their origin should be traced back to very general underlying mechanisms, for instance, the fact that smaller the fraction of the relevant quantity (e.g. wealth) that agent can exchange during an interaction, the closer the corresponding equilibrium distribution is to a fair distribution.     

Kinetic models of immediate exchange

We propose a novel kinetic exchange model differing from previous ones in two main aspects. First, the basic dynamics is modified in order to represent economies where immediate wealth exchanges are carried out, instead of reshufflings or uni-directional movements of wealth. Such dynamics produces wealth distributions that describe more faithfully real data at small values of wealth. Secondly, a general probabilistic trading criterion is introduced, so that two economic units can decide independently whether to trade or not depending on their profit. It is found that the type of the equilibrium wealth distribution is the same for a large class of trading criteria formulated in a symmetrical way with respect to the two interacting units. This establishes unexpected links between and provides a microscopic foundations of various kinetic exchange models in which the existence of a saving propensity is postulated. We also study the generalized heterogeneous version of the model in which units use different trading criteria and show that suitable sets of diversified parameter values with a moderate level of heterogeneity can reproduce realistic wealth distributions with a Pareto power law.     

Economic exchanges in a stratified society: End of the middle class?

We study the effect of the social stratification on the wealth distribution on a system of interacting economic agents that are constrained to interact only within their own economic class. The economical mobility of the agents is related to its success in exchange transactions. Different wealth distributions are obtained as a function of the width of the economic class. We find a range of widths in which the society is divided in two classes separated by a deep gap that prevents further exchange between poor and rich agents. As a consequence, the middle wealth class is eliminated. The high values of the Gini indices obtained in these cases indicate a highly unequal society. On the other hand, lower and higher widths induce lower Gini indices and a fairer wealth distribution.     

Free energy and entropy production in planar Couette flow far from equilibrium

The macroscopic thermodynamic stability of a system of 108 diatomic molecules undergoing planar Couette flow far from equilibrium is reported. The system is perturbed from the steady state using a nondissipative variable colour field which induces a polarization in the system. It is found that the steady state for the system corresponds to an extremum in the generalized free energy and entropy production. However, while the free energy is always a minimum, the entropy production may be either a minimum or a maximum depending upon the direction of the colour field. These results, for a molecular system, are fundamentally different from those for an equivalent atomic system.     

Statistical mechanics of money

In a closed economic system, money is conserved. Thus, by analogy with energy, the equilibrium probability distribution of money must follow the exponential Boltzmann-Gibbs law characterized by an effective temperature equal to the average amount of money per economic agent. We demonstrate how the Boltzmann-Gibbs distribution emerges in computer simulations of economic models. Then we consider a thermal machine, in which the difference of temperatures allows one to extract a monetary profit. We also discuss the role of debt, and models with broken time-reversal symmetry for which the Boltzmann-Gibbs law does not hold. The instantaneous distribution of money among the agents of a system should not be confused with the distribution of wealth. The latter also includes material wealth, which is not conserved, and thus may have a different (e.g. power-law) distribution. Received 22 June 2000     

Class formation in a social network with asset exchange

We study two kinds of economic exchanges, additive and multiplicative, in a system of N agents. The work is divided into two parts. In the first one, the agents are free to interact with each other. The system evolves to a Boltzmann-Gibbs distribution with additive exchange and condenses with a multiplicative one. If bankruptcy is introduced, both types of exchange lead to condensation. Condensation times have been studied. In the second part, the agents are placed in a social network. We analyze the behavior of wealth distributions in time, and the formation of economic classes is observed for certain values of network connectivity.     

Econophysics and the Entropic Foundations of Economics

This paper examines relations between econophysics and the law of entropy as foundations of economic phenomena. Ontological entropy, where actual thermodynamic processes are involved in the flow of energy from the Sun through the biosphere and economy, is distinguished from metaphorical entropy, where similar mathematics used for modeling entropy is employed to model economic phenomena. Areas considered include general equilibrium theory, growth theory, business cycles, ecological economics, urban–regional economics, income and wealth distribution, and financial market dynamics. The power-law distributions studied by econophysicists can reflect anti-entropic forces is emphasized to show how entropic and anti-entropic forces can interact to drive economic dynamics, such as in the interaction between business cycles, financial markets, and income distributions.     

Effects of Vaccination Efficacy on Wealth Distribution in Kinetic Epidemic Models

The spread of the COVID-19 pandemic has highlighted the close link between economics and health in the context of emergency management. A widespread vaccination campaign is considered the main tool to contain the economic consequences. This paper will focus, at the level of wealth distribution modeling, on the economic improvements induced by the vaccination campaign in terms of its effectiveness rate. The economic trend during the pandemic is evaluated, resorting to a mathematical model joining a classical compartmental model including vaccinated individuals with a kinetic model of wealth distribution based on binary wealth exchanges. The interplay between wealth exchanges and the progress of the infectious disease is realized by assuming, on the one hand, that individuals in different compartments act differently in the economic process and, on the other hand, that the epidemic affects risk in economic transactions. Using the mathematical tools of kinetic theory, it is possible to identify the equilibrium states of the system and the formation of inequalities due to the pandemic in the wealth distribution of the population. Numerical experiments highlight the importance of the vaccination campaign and its positive effects in reducing economic inequalities in the multi-agent society.     

强迫耗散系统的有序结构和系统的发展(Ⅰ)，最小熵产生原理和有序结构

一个系统的发展总是由不可逆热力过程和非线性动力过程所驱动.将大气动力学方程组同考虑了动能变化的Gibbs关系结合起来构建的熵平衡方程，才能更好地描述大气系统的不可逆热力过程和非线性动力过程.至今非平衡态热力学仅利用Onsager线性唯象关系证明了最小熵产生原理.利用新建立的熵平衡方程和大气动力学方程的性质证明，最小熵产生原理在热力学线性区和非线性区都是普遍成立的.且当热量输送平衡、水汽输送平衡和动量输送平衡时，系统达到不可逆过程最弱的最小熵产生热力学状态.当系统又是动力平衡且无平流时，这种最小熵产生态就是 关键词： 非线性热力学 熵产生 最小熵产生原理 有序结构     

Evolution of the Distribution of Wealth in an Economic Environment Driven by Local Nash Equilibria

We present and analyze a model for the evolution of the wealth distribution within a heterogeneous economic environment. The model considers a system of rational agents interacting in a game theoretical framework, through fairly general assumptions on the cost function. This evolution drives the dynamic of the agents in both wealth and economic configuration variables. We consider a regime of scale separation where the large scale dynamics is given by a hydrodynamic closure with a Nash equilibrium serving as the local thermodynamic equilibrium. The result is a system of gas dynamics-type equations for the density and average wealth of the agents on large scales. We recover the inverse gamma distribution as an equilibrium in the particular case of quadratic cost functions which has been previously considered in the literature.     

Free energy and the relative entropy

Under the assumption of an identity determining the free energy of a state of a statistical mechanical system relative to a given equilibrium state by means of the relative entropy, it is shown: first, that there is in any physically definable convex set of states a unique state of minimum free energy measured relative to a given equilibrium state; second, that if a state has finite free energy relative to an equilibrium state, then the set of its time translates is a weakly relatively compact set; and third, that a unique perturbed equilibrium state exists following a change in Hamiltonian that is bounded below.     

On entropy production

We investigate the case of a dynamical system when irreversible time evolution is generated by a nonHermitian superoperator on the states of the system. We introduce a generalized scalar product which can be used to construct a monotonically changing functional of the state, a generalized entropy. This will depend on the level of system dynamics described by the evolution equation. In this paper we consider the special case when the irreversibility derives from imbedding the system of interest into a thermal reservoir. The ensuing time evolution is shown to be compatible both with equilibrium thermodynamics and the entropy production near the final steady state. In particular, Prigogine’s principle of minimum entropy production is discussed. Also the limit of zero temperature is considered. We present comments on earlier treatments.     

Statistical mechanics of a nonequilibrium steady-state classical particle system driven by a constant external force

A classical particle system coupled with a thermostat driven by an external constant force reaches its steady state when the ensemble-averaged drift velocity does not vary with time. In this work, the statistical mechanics of such a system is derived solely based on the equiprobability and ergodicity principles, free from any conclusions drawn on equilibrium statistical mechanics or local equilibrium hypothesis. The momentum space distribution is determined by a random walk argument, and the position space distribution is determined by employing the equiprobability and ergodicity principles. The expressions for energy, entropy, free energy, and pressures are then deduced, and the relation among external force, drift velocity, and temperature is also established. Moreover, the relaxation towards its equilibrium is found to be an exponentially decaying process obeying the minimum entropy production theorem.     

Effect of Savings on a Gas-Like Model Economy with Credit and Debt

In kinetic exchange models, agents make transactions based on well-established microscopic rules that give rise to macroscopic variables in analogy to statistical physics. These models have been applied to study processes such as income and wealth distribution, economic inequality sources, economic growth, etc., recovering well-known concepts in the economic literature. In this work, we apply ensemble formalism to a geometric agents model to study the effect of saving propensity in a system with money, credit, and debt. We calculate the partition function to obtain the total money of the system, with which we give an interpretation of the economic temperature in terms of the different payment methods available to the agents. We observe an interplay between the fraction of money that agents can save and their maximum debt. The system’s entropy increases as a function of the saved proportion, and increases even more when there is debt.     

Wealth condensation in a Barabasi-Albert network

We study the flow of money among agents in a Barabasi-Albert (BA) scale free network, where each network node represents an agent and money exchange interactions are established through links. The system allows money trade between two agents at a time, betting a fraction f of the poorer’s agent wealth. We also allow for the bet to be biased, giving the poorer agent a winning probability p. In the no network case there is a phase transition involving a relationship between p and f. In the networked case, we also found a condensation interface, however, this is not a complete condensation due to the presence of clusters in the network and its topology. As can be expected, the winner is always a well-connected agent, but we also found that the mean wealth decreases with the agents’ connectivity.     

The unfair consequences of equal opportunities: Comparing exchange models of wealth distribution

Simple agent based exchange models are a commonplace in the study of wealth distribution of artificial societies. Generally, each agent is characterized by its wealth and by a risk-aversion factor, and random exchanges between agents allow for a redistribution of the wealth. However, the detailed influence of the amount of capital exchanged has not been fully analyzed yet. Here we present a comparison of two exchange rules and also a systematic study of the time evolution of the wealth distribution, its functional dependence, the Gini coefficient and time correlation functions. In many cases a stable state is attained, but, interesting, some particular cases are found in which a very slow dynamics develops. Finally, we observe that the time evolution and the final wealth distribution are strongly dependent on the exchange rules in a nontrivial way.     

Wealth distributions in asset exchange models

A model for the evolution of the wealth distribution in an economically interacting population is introduced, in which a specified amount of assets are exchanged between two individuals when they interact. The resulting wealth distributions are determined for a variety of exchange rules. For “random” exchange, either individual is equally likely to gain in a trade, while “greedy” exchange, the richer individual gains. When the amount of asset traded is fixed, random exchange leads to a Gaussian wealth distribution, while greedy exchange gives a Fermi-like scaled wealth distribution in the long-time limit. Multiplicative processes are also investigated, where the amount of asset exchanged is a finite fraction of the wealth of one of the traders. For random multiplicative exchange, a steady state occurs, while in greedy multiplicative exchange a continuously evolving power law wealth distribution arises. Received: 13 August 1997 / Revised: 31 December 1997 / Accepted: 26 January 1998     

Visible light‐induced diastereoselective E/Z‐photoisomerization equilibrium of the C=C benzofuran‐3‐one‐hydantoin dyad

The diastereoselective photodependent isomerization equilibrium of E/Z‐1,3‐ditolyl‐5‐[3‐oxobenzofuran‐2(3H)‐ylidene]imidazolidine‐2,4‐dione ( 5 ) is reported. Both diastereomers E-5 and Z-5 are stereochemically stable in solid state but show significant photosensibility in solutions of halogenated solvent. The photoisomerization equilibrium of E/Z‐ 5 is therefore deduced from the ¹H NMR profile after visible‐light irradiation of both E-5 and Z-5 samples. The results of the kinetic study, monitored by UV‐HPLC, reveal that the E/Z equilibrium is diastereoselective and photodependent, being the transformation E ? Z proceeding faster than that of Z ? E, and the E/Z ratio at the equilibrium depends on the used solvent, light source, and temperature. Both diastereomers are visible‐light photosensitive tending to coexist together in equilibrium solutions at a determined ratio, which is always in favor of the Z‐product assuming a minimum thermodynamic energy and an increased entropy of the system. Time‐dependent density functional theory calculations suggest that the photoisomerization mechanism proceeds via a conical intersection involving the first‐excited state: Upon irradiation, the E-5 isomer is excited to the S1 potential energy surface, where it relaxes through rotation of the C=C bond and reaches a conical intersection with the ground‐state potential energy surface, thus yielding the Z-5 isomer. Copyright © 2014 John Wiley & Sons, Ltd.     

Stratified economic exchange on networks

We investigate a model of stratified economic interactions between agents when the notion of spatial location is introduced. The agents are placed on a network with near-neighbor connections. Interactions between neighbors can occur only if the difference in their wealth is less than a threshold value that defines the width of the economic classes. By employing concepts from spatiotemporal dynamical systems, three types of patterns can be identified in the system as parameters are varied: laminar, intermittent and turbulent states. The transition from the laminar state to the turbulent state is characterized by the activity of the system, a quantity that measures the average exchange of wealth over long times. The degree of inequality in the wealth distribution for different parameter values is characterized by the Gini coefficient. High levels of activity are associated to low values of the Gini coefficient. It is found that the topological properties of the network have little effect on the activity of the system, but the Gini coefficient increases when the clustering coefficient of the network is increased.