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Updated: Sep 27, 2025
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The Collective Trust Game: An Online Group Adaptation of the Trust Game Based on the HoneyComb Paradigm
Published on: October 20, 2022
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An economically realistic asset exchange model.
Bruce M Boghosian1,2, Matthew Hudes1, Gor A Khachatryan3
1Dept. of Mathematics, Tufts University, Medford, MA 02155, USA.
Summary
Agent-based models show wealth distribution agreement. The Affine Wealth Model (AWM) aligns with Prospect Theory, bridging econophysics and microeconomics for wealth distribution studies.
Area of Science:
- Econophysics
- Microeconomics
- Behavioral Economics
Background:
- Agent-based models (ABMs) from physics/math show empirical wealth distribution agreement.
- A gap exists between idealized ABMs and realistic microeconomic exchange models.
- The Affine Wealth Model (AWM) is a three-parameter ABM with high empirical wealth data agreement.
Purpose of the Study:
- Examine the connection between the AWM and established microeconomic theories.
- Determine if the AWM's phenomenology aligns with key economic models.
- Establish a link between econophysics and microeconomics for wealth distribution.
Main Methods:
- Compared the Affine Wealth Model (AWM) properties with three major economic theories: Expected Utility Theory, General Equilibrium Theory, and Prospect Theory.
- Analyzed the phenomenological characteristics of the AWM.
- Assessed the compatibility of AWM's exchange dynamics with theoretical economic frameworks.
Main Results:
- The AWM's behavior is fundamentally incompatible with Expected Utility Theory and General Equilibrium Theory.
- The AWM exhibits phenomenology highly similar to Prospect Theory.
- AWM transactions approximate the principles described by Prospect Theory.
Conclusions:
- Prospect Theory provides a crucial link between econophysics and microeconomics for understanding wealth distribution.
- The AWM serves as an approximation to Prospect Theory in the context of asset exchange.
- This research bridges idealized agent-based models with established economic theories for wealth dynamics.
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