Strategy-based wealth distributions
نویسنده
چکیده
We explore a simple game-theoretical betting model where players’ bets influence the outcome of a probabilistic game. We find that the dynamics and equilibrium results for these games are quite simple, but the transitory distribution of wealth is interesting. Most econophysics models of wealth distribution use random exchanges. In our model, in contrast, skill accounts for a majority of the wealth gain, yet our results still exhibit a power-law distribution of wealth. Results are presented analyzing the efficiency of our parimutuel betting scheme and the influence of taxes on the long-term stability of the model.
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