Robin Hood model versus Sheriff of Nottingham model: transfers in population dynamics

TL;DR

This paper analyzes models of wealth transfer in populations, comparing altruistic and predatory transfer rules, and explores their mathematical properties and long-term effects through theoretical analysis and simulations.

Contribution

It introduces a continuum of transfer models interpolating between Robin Hood and Sheriff of Nottingham, analyzing their well-posedness, stability, and population segregation effects.

Findings

Small Sheriff of Nottingham transfers cause population segregation.

Models exhibit different stability properties depending on transfer kernels.

Numerical simulations illustrate extreme wealth disparities over time.

Abstract

We study the problem of transfers in a population structured by a continuous variable corresponding to the quantity being transferred. The model takes the form of an integro-differential equations with kernels corresponding to the specific rules of the transfer process. We focus our interest on the well-posedness of the Cauchy problem in the space of measures. We characterize transfer kernels that give a continuous semiflow in the space of measures and derive a necessary and sufficient condition for the stability of the space $L^1$ of integrable functions. We construct some examples of kernels that may be particularly interesting in economic applications. Our model considers blind transfers of economic value (e.g. money) between individuals. The two models are the ``Robin Hood model'', where the richest individual unconditionally gives a fraction of their wealth to the poorest when a transfer occurs, and the other extreme, the ``Sheriff of Nottingham model'', where the richest unconditionally takes a fraction of the poorest's wealth. Between these two extreme cases is a continuum of intermediate models obtained by interpolating the kernels. We illustrate those models with numerical simulations and show that any small fraction of the ``Sheriff of Nottingham'' in the transfer rules leads to a segregated population with extremely poor and extremely rich individuals after some time. Although our study is motivated by economic applications, we believe that this study is a first step towards a better understanding of many transfer phenomena occurring in the life sciences.