The yard-sale model, also known as the yard sale effect, is a kinetic exchange market model in which agents repeatedly exchange wealth in random pairs, with the amount at stake set by the wealth of the poorer participant, akin to a garage sale where people exchange goods and money. In its standard form, the model is a closed and wealth-conserving system, yet repeated fair exchanges drive the distribution of wealth toward extreme concentration.
The yard-sale model, also known as the yard sale effect, is a kinetic exchange market model in which agents repeatedly exchange wealth in random pairs, with the amount at stake set by the wealth of the poorer participant, akin to a garage sale where people exchange goods and money. In its standard form, the model is a closed and wealth-conserving system, yet repeated fair exchanges drive the distribution of wealth toward extreme concentration.
Source: Wikipedia "Yard-sale model" · CC BY-SA 4.0
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