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...

Full description

Saved in:
Bibliographic Details
Main Authors: Sarah Leutner, Illia Terpylo, Detlef Groth
Format: Article
Language:English
Published: Universitätsverlag Potsdam 2025-07-01
Series:Human Biology and Public Health
Subjects:
Online Access:http://www.human-biology-and-public-health.org/index.php/hbph/article/view/94
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1849340225784905728
author Sarah Leutner
Illia Terpylo
Detlef Groth
author_facet Sarah Leutner
Illia Terpylo
Detlef Groth
author_sort Sarah Leutner
collection DOAJ
description 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.
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
work_keys_str_mv AT sarahleutner theimpactofa10taxrateandredistributiononresourceconcentrationinnetworks
AT illiaterpylo theimpactofa10taxrateandredistributiononresourceconcentrationinnetworks
AT detlefgroth theimpactofa10taxrateandredistributiononresourceconcentrationinnetworks
AT sarahleutner impactofa10taxrateandredistributiononresourceconcentrationinnetworks
AT illiaterpylo impactofa10taxrateandredistributiononresourceconcentrationinnetworks
AT detlefgroth impactofa10taxrateandredistributiononresourceconcentrationinnetworks