Universal Growth in Exchange Economies

Elath Hall, 2nd floor, Feldman Building, Edmond J. Safra Campus
Sunday, December 10, 2017 - 11:30 to 13:00
Simina Brânzei
The Hebrew University of Jerusalem

We show that a simple decentralized dynamic, where players update theirbids proportionally to how useful the investments were, leads to growth ofthe economy in the long term (whenever growth is possible) but also createsunbounded inequality, i.e. very rich and very poor players emerge. Weanalyze several other phenomena, such as how the relation of a player withothers influences its development and the Gini index of the system.Joint work with Ruta Mehta and Noam Nisan.