# Wealth condensation as a zero range process

Presented by:
D Johnston [Heriot-Watt]
Date:
Thursday 16th February 2006 - 11:00 to 12:00
Venue:
INI Seminar Room 2
Abstract:

We discuss the wealth condensation mechanism in a simple toy economy in which individual agent's wealths are distributed according to a Pareto power law and the overall wealth is fixed. The observed behaviour is the manisfestation of a transition which occurs in Zero Range Processes (ZRPs) or balls in boxes'' models. An amusing feature of the transition in this context is that the condensation can be induced by {\it increasing} the exponent in the power law, which one might have naively assumed penalized greater wealths more.

Presentation Material: