A Model of the Distribution of Wealth in Society

A model of the distribution of wealth in society will be presented. The model is based on an agent-based Monte Carlo simulation where interaction (exchange of wealth) is allowed along the edges of a small-world network. The interaction is like inelastic scattering and it is characterized by two constants. Simulations of the model show that the distribution behaves as a power-law and it agrees with results of Pareto.