A Study of the Distribution of Money in Exchange Networks of Agents

<p>We investigate network models of economic agents that exchange money with their neighbors. These models are closely related to thermodynamic models of inert gasses modelled by the Boltzmann distribution. We are interested in the stationary distribution of money that is reached after many exchanges.</p> <p>We explore two types of networks, static networks and stochastic dynamic networks, where connectivity of the graph changes as a function of the money distribution. We present theoretical results and simulations for different variants of the dynamic graph model. Furthermore, we examine the properties of the stochastic networks that emerge out of the dynamic network models at equilibrium. We also present a stochastic matrix model for simulating evolution of an individual agent in static networks.</p>