We introduce a simplified version (STvL) of the Talent versus Luck (TvL) model  where only lucky events are present and verify that its dynamical rules lead to the same very large wealth inequality as the original model. We also derive some analytical approximations aimed to capture the mechanism responsible for the creation of such wealth inequality from a Gaussian-distributed talent. Under these approximations, our analysis is able to reproduce quite well the results of the numerical simulations of the simplified model in special cases. On the other hand, it also shows that the complexity of the model lies in the fact that lucky events are transformed into an increase of capital with heterogeneous rates, which yields a non-trivial generalization of the role of multiplicative processes in generating wealth inequality, whose fully generic case is still not amenable to analytical computations.
|Titolo:||The origins of extreme wealth inequality in the Talent vs Luck Model|
PLUCHINO, ALESSANDRO (Corresponding)
|Data di pubblicazione:||2020|
|Appare nelle tipologie:||1.1 Articolo in rivista|