Socio-economical dynamics as a solvable spin system on co-evolving networks

We consider social systems in which agents are not only characterized by their states but also have the freedom to choose their interaction partners to maximize their utility. We map such systems onto an Ising model in which spins are dynamically coupled by links in a dynamical network. In this model there are two dynamical quantitieswhich arrange towards a minimum energy state in the canonical framework:the spins, s_i, and the adjacency matrix elements, c_ij.The model is exactly solvable because microcanonical partition functions reduce to productsof binomial factors as a direct consequence of the c_ij minimizing energy. We solve the system for finite sizes and for the two possible thermodynamic limits and discussthe phase diagrams.