Market Behavior and Evolution of Wealth Distribution: A Simulation Model Based on Artificial Agents
The aim of this work is to simulate a market behavior in order to study the evolution of wealth distribution. The numerical simulations are carried out on a simple economical model with a finite number of economic agents, which are able to exchange goods/services and money; the various agents intera...
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doaj-baac04e5cf4146219fd81ffadff1ba4f2021-02-04T00:01:15ZengMDPI AGMathematical and Computational Applications1300-686X2297-87472021-02-0126121210.3390/mca26010012Market Behavior and Evolution of Wealth Distribution: A Simulation Model Based on Artificial AgentsAndrea Giunta0Gaetano Giunta1Domenico Marino2Francesco Oliveri3Department of Mathematical and Computer Sciences, Physical Sciences and Earth Sciences, University of Messina, Viale F. Stagno d’Alcontres 31, 98166 Messina, ItalyInteruniversitary Horcynus Orca Foundation, Capo Peloro, 98164 Messina, ItalyDepartment of Heritage, Architecture and Urban Planning Mediterranean, University of Reggio Calabria, Salita Melissari, 89124 Reggio Calabria, ItalyDepartment of Mathematical and Computer Sciences, Physical Sciences and Earth Sciences, University of Messina, Viale F. Stagno d’Alcontres 31, 98166 Messina, ItalyThe aim of this work is to simulate a market behavior in order to study the evolution of wealth distribution. The numerical simulations are carried out on a simple economical model with a finite number of economic agents, which are able to exchange goods/services and money; the various agents interact each other by means of random exchanges. The model is micro founded, self-consistent, and predictive. Despite the simplicity of the model, the simulations show a complex and non-trivial behavior. First of all, we are able to recognize two solution classes, namely two phases, separated by a threshold region. The analysis of the wealth distribution of the model agents, in the threshold region, shows functional forms resembling empirical quantitative studies of the probability distributions of wealth and income in the United Kingdom and the United States. Furthermore, the decile distribution of the population wealth of the simulated model, in the threshold region, overlaps in a suggestive way with the real data of the Italian population wealth in the last few years. Finally, the results of the simulated model allow us to draw important considerations for designing effective policies for economic and human development.https://www.mdpi.com/2297-8747/26/1/12artificial agentsmarket simulationwealth distribution |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Andrea Giunta Gaetano Giunta Domenico Marino Francesco Oliveri |
spellingShingle |
Andrea Giunta Gaetano Giunta Domenico Marino Francesco Oliveri Market Behavior and Evolution of Wealth Distribution: A Simulation Model Based on Artificial Agents Mathematical and Computational Applications artificial agents market simulation wealth distribution |
author_facet |
Andrea Giunta Gaetano Giunta Domenico Marino Francesco Oliveri |
author_sort |
Andrea Giunta |
title |
Market Behavior and Evolution of Wealth Distribution: A Simulation Model Based on Artificial Agents |
title_short |
Market Behavior and Evolution of Wealth Distribution: A Simulation Model Based on Artificial Agents |
title_full |
Market Behavior and Evolution of Wealth Distribution: A Simulation Model Based on Artificial Agents |
title_fullStr |
Market Behavior and Evolution of Wealth Distribution: A Simulation Model Based on Artificial Agents |
title_full_unstemmed |
Market Behavior and Evolution of Wealth Distribution: A Simulation Model Based on Artificial Agents |
title_sort |
market behavior and evolution of wealth distribution: a simulation model based on artificial agents |
publisher |
MDPI AG |
series |
Mathematical and Computational Applications |
issn |
1300-686X 2297-8747 |
publishDate |
2021-02-01 |
description |
The aim of this work is to simulate a market behavior in order to study the evolution of wealth distribution. The numerical simulations are carried out on a simple economical model with a finite number of economic agents, which are able to exchange goods/services and money; the various agents interact each other by means of random exchanges. The model is micro founded, self-consistent, and predictive. Despite the simplicity of the model, the simulations show a complex and non-trivial behavior. First of all, we are able to recognize two solution classes, namely two phases, separated by a threshold region. The analysis of the wealth distribution of the model agents, in the threshold region, shows functional forms resembling empirical quantitative studies of the probability distributions of wealth and income in the United Kingdom and the United States. Furthermore, the decile distribution of the population wealth of the simulated model, in the threshold region, overlaps in a suggestive way with the real data of the Italian population wealth in the last few years. Finally, the results of the simulated model allow us to draw important considerations for designing effective policies for economic and human development. |
topic |
artificial agents market simulation wealth distribution |
url |
https://www.mdpi.com/2297-8747/26/1/12 |
work_keys_str_mv |
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