Income and Wealth Distributions from Stochastic Strategy Minority Game

Loading...
Thumbnail Image
Journal Title
Journal ISSN
Volume Title
A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä
This publication is imported from Aalto University research portal.
View publication in the Research portal
View/Open full text file from the Research portal
Date
2017
Major/Subject
Mcode
Degree programme
Language
en
Pages
1
1-9
Series
Reports in Advances of Physical Sciences, Volume 1, issue 1
Abstract
We propose a version of the Minority Game where the agents at each time make investments either in terms of money or stock from their possessions. The amount of investments at each time step, and not the number of people opting for a choice, determines the ‘minority’. The invested money is returned to the stock investors and the invested stock is returned to the money investors in proportion of their respective investments at each time. In this way, agents in the less investment side faces higher demand, and hence are in ‘minority’, receiving higher pay-off for their investments. This dynamics lead the ‘market’ to a self-organized state. We measure the distributions of income of the agents at every step and also the accumulated wealth, both of which have a stationary distribution. The distribution functions follow Pareto’s law when the agents invest random fractions of their wealth. This reflects the role of heterogeneity in economic interactions.
Description
Keywords
Other note
Citation
Ghosh , A & Biswas , S 2017 , ' Income and Wealth Distributions from Stochastic Strategy Minority Game ' , Reports in Advances of Physical Sciences , vol. 1 , no. 1 , 1740003 , pp. 1-9 . https://doi.org/10.1142/S2424942417400035