Wealth distribution in Talent vs Luck model

September 24, 2019 Aleksejus Kononovicius #Interactive models #Agent-based models #wealth #talent vs luck

Here we continue our discussion on the Talent vs Luck model proposed by [1]. This time we show you the reason why this model is worthy of comparison to the kinetic exchange models. This model is capable of reproducing power-law wealth (capital in this model) distribution.

HTML 5 app

Feel free to explore a new app, which is essentially identical to the one from the original post. It just shows three different plots.

In the top right we now can see wealth distribution (its PDF) on double logarithmic. Given enough time we will see straight line there, which indicates that wealth distribution is power-law. On the bottom row we have on figure talent distribution (it remains fixed through out the simulation) as well as relative luck distribution (which appears to be close to being normally distributed).

References

A. Pluchino, A. E. Biondo, A. Rapisarda. Talent versus Luck: The role of randomness in success and failure. Advances in Complex Systems 21: 1850014 (2018). arXiv:1802.07068 [physics.soc-ph]. doi: 10.1142/S0219525918500145.