Application of the Deffuant model in money exchange

TL;DR

This paper adapts the Deffuant model to simulate money exchange between agents, analyzing conditions for wealth equality and system stability in social networks.

Contribution

It introduces a novel application of the Deffuant model to money transfer, exploring stability and wealth distribution in a social network context.

Findings

Identifies conditions for asymptotic stability in money exchange

Demonstrates potential for equal wealth distribution

Analyzes impact of social connectivity on wealth dynamics

Abstract

A money transfer involves a buyer and a seller. A buyer buys goods or services from a seller. The money the buyer decreases is the same as that the seller increases. At each time step, a pair of socially connected agents are selected and transact in agreed money. We evolve the Deffuant model to a money exchange system and study circumstances under which asymptotic stability holds, or equal wealth can be achieved.