Simulation: Ten Agent Economy
The Ten Agent Economy shows the change in wealth as agents interact in the AEM economy. The goal of the model is not to reproduce the specifics of particular societies, but to provide insight into their general behavior. The beauty of the model is how little is needed to produce results that help us understand why wealth inequality occurs. The model consists of many exchanges of wealth between two agents chosen at random.
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Wealth Distributions

The key idea of the model is that usually one agent gains and one agent loses when they engage in economic activity. If you buy something, you give some of your wealth to the store in the form of money and you receive a product in exchange, which adds to your wealth.
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Simulation: Agent Wealth Evolution
Why does one agent obtain almost all of the wealth? The reason is that a percentage of the smaller wealth of the two agents is always transferred. Hence, richer agents lose a smaller percentage of their wealth compared to poorer agents. As most of the agents become poorer, richer agents rarely transfer wealth to other rich agents and hence rarely lose a significant percentage of their wealth. Run the model and notice that before one agent ultimately receives almost all of the wealth.
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What does the model predict?

Why does one agent obtain almost all of the wealth? The reason is that a percentage of the smaller wealth of the two agents is always transferred.
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What have we learned?

A summary of what you might have found from running the simulations.
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