Welcome to the tutorial to using the inequality model, based on the paper
Wealth Condensation in a Simple Model of Economy
The goal of this tutorial is to introduce you to using the model, which is made using NetLogo,
a multi-agent programmable modelling environment, suitable for agent-based modelling.
In this model, the agents represent people, people trade a part of their wealth, gain interest,
and pay tax, which gets redistributed to the ones with less money.
Press the setup button to start the simulation:
You should now see a graph, with nodes of different colours and numbers
These represent people, the numbers are initial wealth, and the colour is economic state.
What each colour means has been defined under the diagram.
Press the step button to make everyone trade once.
You should now be able to see the change in the value of each node.
This is because everyone has given exactly 20% of their income to each neighbour.
Now, let's explain the diagrams on the right of the screen.
The Histogram Relative Wealth chart shows the spread of relative wealth
across the agents.
The Wealth Stats chart shows how the average and the spread of
wealth amongst the agents behaves as time progresses.
You can also see the wealth contribution of the top 10% and the bottom 10%
The Redistribution Money is going to be the money given to the bottom 10%,
but we're not considering it yet...
Press the go button for everyone to continuously trade.
Press it again for them to stop.
Press setup again to restart the procedure, creating a whole new network.
Last but not least for this model, you can set a maximum timer,
after which the model will stop indefinitely.
For this change to take place, press the setup button again
Now, you may have noticed that after a few steps, everyone will have the same amount of money.
This is because there is no interest, and everyone trades around the same portion of their wealth.
The next model will introduce a variable exchange rate…