Antipersistent dynamics in kinetic models of wealth exchange

Area of Science:

• Econophysics
• Statistical mechanics of financial markets
• Agent-based modeling

Background:

• Kinetic models of wealth exchange describe agent interactions.
• Previous work modeled agent wealth dynamics as a walk in gain-loss space.
• Diffusive behavior observed in models with no or uniform saving propensity.

Purpose of the Study:

• Investigate detailed dynamics of agent gains and losses in kinetic wealth exchange models.
• Analyze the nature of the gain-loss walk when saving propensity is randomly distributed.
• Explore microscopic differences between these walks and biased random walks.

Main Methods:

• Agent-based modeling of wealth exchange.
• Analysis of gain-loss dynamics in abstract space.
• Comparison of microscopic and macroscopic walk properties.

Main Results:

• Random saving propensity (λ) leads to ballistic walk behavior (except at λ*≈0.47).
• Microscopic analysis reveals significant differences from biased random walks.
• An antipersistent tendency to alternate gains and losses is identified.

Conclusions:

• Antipersistence in gain-loss sequences is a key feature across different saving models.
• Distributed saving introduces antipersistence alongside an overall bias.
• Kinetic wealth models exhibit non-trivial walk dynamics beyond simple random processes.