Learning increases growth and reduces inequality in shared noisy environments.

ABSTRACT: Stochastic multiplicative dynamics characterize many complex natural phenomena such as selection and mutation in evolving populations, and the generation and distribution of wealth within social systems. Population heterogeneity in stochastic growth rates has been shown to be the critical driver of wealth inequality over long time scales. However, we still lack a general statistical theory that systematically explains the origins of these heterogeneities resulting from the dynamical adaptation of agents to their environment. In this paper, we derive population growth parameters resulting from the general interaction between agents and their environment, conditional on subjective signals each agent perceives. We show that average wealth-growth rates converge, under specific conditions, to t

SUBMITTER: Kemp JT 

PROVIDER: S-EPMC10109450 | biostudies-literature | 2023 Apr

REPOSITORIES: biostudies-literature