The Impact of a 10% Tax Rate and Redistribution on Resource Concentration in Networks
Background Resource disparities are common in social networks, often driven by competitive interactions. Exploring how interventions like taxation influence these inequalities can reveal mechanisms for more balanced distributions. Objectives This study investigates the effects of a 10% tax rate a...
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| Format: | Article |
| Language: | English |
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Universitätsverlag Potsdam
2025-07-01
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| Series: | Human Biology and Public Health |
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| Online Access: | http://www.human-biology-and-public-health.org/index.php/hbph/article/view/94 |
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| author | Sarah Leutner Illia Terpylo Detlef Groth |
| author_facet | Sarah Leutner Illia Terpylo Detlef Groth |
| author_sort | Sarah Leutner |
| collection | DOAJ |
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Background Resource disparities are common in social networks, often driven by competitive interactions. Exploring how interventions like taxation influence these inequalities can reveal mechanisms for more balanced distributions.
Objectives This study investigates the effects of a 10% tax rate and redistribution on inequality and resource stability within two network models: the ‘Winner-Loser Model’ which intensifies hierarchies through competitive interactions, and the ‘Null Model’, simulating equal opportunity exchanges.
Sample and Methods We used Monte Carlo simulations with agents starting at equal resource levels, interacting under the rules of each model. Taxation effects were measured through Gini coefficients and Lambda stability scores across various network sizes.
Results Taxation reduced Gini coefficients in both models, promoting more balanced distributions. Lambda values indicated that taxation improved stability, especially within the ‘Winner-Loser Model’, by diminishing extreme resource accumulation.
Conclusions The study demonstrates that while competitive dynamics naturally drive inequality, taxation and redistribution mechanisms can stabilize and reduce disparities. These findings suggest that even simple redistribution can reduce hierarchical resource concentration and counteract extreme inequalities in networked settings.
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| format | Article |
| id | doaj-art-82c6ae31b1ce49f9b6d1a97b63b52257 |
| institution | Kabale University |
| issn | 2748-9957 |
| language | English |
| publishDate | 2025-07-01 |
| publisher | Universitätsverlag Potsdam |
| record_format | Article |
| series | Human Biology and Public Health |
| spelling | doaj-art-82c6ae31b1ce49f9b6d1a97b63b522572025-08-20T03:43:57ZengUniversitätsverlag PotsdamHuman Biology and Public Health2748-99572025-07-01110.52905/hbph2025.1.94The Impact of a 10% Tax Rate and Redistribution on Resource Concentration in NetworksSarah Leutner0https://orcid.org/0009-0002-3076-2690Illia Terpylo1Detlef Groth2https://orcid.org/0000-0002-9441-3978University of Potsdam, Institute of Biochemistry and Biology, 14476 Potsdam-GolmUniversity of Potsdam, Institute of Biochemistry and Biology, 14476 Potsdam-Golm, GermanyUniversity of Potsdam, Institute of Biochemistry and Biology, 14476 Potsdam-Golm, Germany Background Resource disparities are common in social networks, often driven by competitive interactions. Exploring how interventions like taxation influence these inequalities can reveal mechanisms for more balanced distributions. Objectives This study investigates the effects of a 10% tax rate and redistribution on inequality and resource stability within two network models: the ‘Winner-Loser Model’ which intensifies hierarchies through competitive interactions, and the ‘Null Model’, simulating equal opportunity exchanges. Sample and Methods We used Monte Carlo simulations with agents starting at equal resource levels, interacting under the rules of each model. Taxation effects were measured through Gini coefficients and Lambda stability scores across various network sizes. Results Taxation reduced Gini coefficients in both models, promoting more balanced distributions. Lambda values indicated that taxation improved stability, especially within the ‘Winner-Loser Model’, by diminishing extreme resource accumulation. Conclusions The study demonstrates that while competitive dynamics naturally drive inequality, taxation and redistribution mechanisms can stabilize and reduce disparities. These findings suggest that even simple redistribution can reduce hierarchical resource concentration and counteract extreme inequalities in networked settings. http://www.human-biology-and-public-health.org/index.php/hbph/article/view/94RedistributionSocial NetworksTaxationTriad MotifWinner-Loser Model |
| spellingShingle | Sarah Leutner Illia Terpylo Detlef Groth The Impact of a 10% Tax Rate and Redistribution on Resource Concentration in Networks Human Biology and Public Health Redistribution Social Networks Taxation Triad Motif Winner-Loser Model |
| title | The Impact of a 10% Tax Rate and Redistribution on Resource Concentration in Networks |
| title_full | The Impact of a 10% Tax Rate and Redistribution on Resource Concentration in Networks |
| title_fullStr | The Impact of a 10% Tax Rate and Redistribution on Resource Concentration in Networks |
| title_full_unstemmed | The Impact of a 10% Tax Rate and Redistribution on Resource Concentration in Networks |
| title_short | The Impact of a 10% Tax Rate and Redistribution on Resource Concentration in Networks |
| title_sort | impact of a 10 tax rate and redistribution on resource concentration in networks |
| topic | Redistribution Social Networks Taxation Triad Motif Winner-Loser Model |
| url | http://www.human-biology-and-public-health.org/index.php/hbph/article/view/94 |
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