Key characteristics of the affine wealth model:
- The affine wealth model is agent-based i.e. each person or corporation is an agent.
- Wealth distribution arises from pairwise agent transactions e.g. agent A has a transaction with agent B.
- Wealth moves when an agent makes a mistake.
- The affine wealth model matches empirical data on US wealth distribution.
- chi stabilizes the wealth distribution and avoids oligarchy.
- zeta results in partial oligarchy.
- kappa shifts the wealth distribution downward to model debt.