The Surprisingly Unequal Outcome of Random Wealth Distribution

2025-06-13
The Surprisingly Unequal Outcome of Random Wealth Distribution

A simple experiment: 100 people, each with $100, randomly redistribute their money each round. What do you expect? Not equal distribution! Simulations show wealth inequality rapidly emerges and persists. Why does this seemingly fair, random process generate winners and losers? The article delves into this, analyzing the phenomenon from graph theory and probability perspectives, drawing parallels to the Boltzmann distribution in physics. It finds that even slight randomness leads to extreme wealth concentration, with a few possessing most of the wealth while many have almost nothing. This isn't a fluke; it's an inherent system property.