Physics (Internal)

The Effect of Network Topology on an Agent-Based Asset Exchange Model

This event is part of the Preliminary Oral Exam.

Examining Committee: William Klein, Harvey Gould, Karl Ludwig, Robert Carey, Plamen Ivanov

Abstract:

Agent-based modeling is a promising step toward understanding economies and predicting sudden economic changes. However, current agent-based asset exchange models neglect the effect of network topological structure on agent interactions. In this presentation, we present simulation results for a network-based asset exchange model that allows for economic growth and show that highly connected economies result in increased wealth disparity between rich and poor agents. After generalizing the model further to an evolving dynamical network, we obtain an exponential agent wealth distribution which closely matches the income distribution of the United States and United Kingdom. Future research directions are also discussed.