Agent dynamics in kinetic models of wealth exchange

TL;DR

This paper investigates how individual agents behave in kinetic wealth exchange models with savings, revealing different diffusion patterns and gain-loss dynamics based on savings distribution.

Contribution

It introduces analysis of agent dynamics in wealth exchange models with savings, highlighting the impact of savings distribution on diffusion and steady state behavior.

Findings

Uniform savings lead to simple random walk behavior.

Distributed savings cause ballistic diffusion.

Gain is more likely when interacting with agents having higher savings.

Abstract

We study the dynamics of individual agents in some kinetic models of wealth exchange, particularly, the models with savings. For the model with uniform savings, agents perform simple random walks in the "wealth space". On the other hand, we observe ballistic diffusion in the model with distributed savings. There is an associated skewness in the gain-loss distribution which explains the steady state behavior in such models. We find that in general an agent gains while interacting with an agent with a larger saving propensity.