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I find the outcome unintuitive. Each person has the same starting conditions and then randomly gives away a dollar each round. There's no interest or compoundin
by eloff 4y ago
I find the outcome unintuitive. Each person has the same starting conditions and then randomly gives away a dollar each round. There's no interest or compounding factors mentioned. My intuition is that, given enough rounds each person could be expected to receive as many dollars as they give away. I guess pure chance would mean some so better or worse than that at any point in game, but overall I expected less variance and more people to be clustered around the starting amount.
There's also the possibility the random number generator is not sufficiently uniform.
- yetihehe 4y agoIf you give dollars at random, wealth will be randomised (will have ALL values from 0 to 100).
- MontyCarloHall 4y agoAt each round when an individual is selected to transfer money, there's a 50:50 probability that they give a dollar or receive a dollar. A coin flip. The total number of heads after N coin flips follows a binomial distribution [0]. So too does the total number of times an individual will receive a dollar over N game rounds. [0] https://en.wikipedia.org/wiki/Binomial_distribution https://en.wikipedia.org/wiki/Binomial_distribution
- AdamH12113 4y agoThere are several different versions of the model which you can reach by following the link at the bottom of the page. The simplest one (which is not the HN link) is purely random. The more sophisticated models add other factors like investments. In the most complex model, the inequality is very dramatic indeed.