Wealth distribution and collective knowledge: A Boltzmann approach

L. Pareschi, G. Toscani

Research output: Contribution to journalArticlepeer-review

58 Scopus citations

Abstract

We introduce and discuss a nonlinear kinetic equation of Boltzmann type that describes the influence of knowledge in the evolution of wealth in a system of agents that interact through the binary trades, an equation first introduced by Cordier et al. (2005 J. Stat. Phys. 120, 253-277 (doi:10.1007/S10955-005-5456-0)). The trades, which include both saving propensity and the risks of the market, are here modified in the risk and saving parameters, which now are assumed to depend on the personal degree of knowledge. The numerical simulations show that the presence of knowledge has the potential to produce a class of wealthy agents and to account for a larger proportion of wealth inequality.

Original languageEnglish
JournalPhilosophical Transactions of the Royal Society A: Mathematical, Physical and Engineering Sciences
Volume372
Issue number2028
DOIs
StatePublished - 13 Nov 2014
Externally publishedYes

Keywords

  • Boltzmann equation
  • Collective knowledge
  • Multi-agent systems
  • Wealth distribution

Fingerprint

Dive into the research topics of 'Wealth distribution and collective knowledge: A Boltzmann approach'. Together they form a unique fingerprint.

Cite this