A biased dollar exchange model involving bank and debt with discontinuous equilibrium

¹ University of Massachusetts Amherst – Department of Mathematics and Statistics, Amherst, MA 01003, USA
² California State University, Fullerton – Department of Mathematics, 800 N State College Blvd, Fullerton, CA 92831, USA

^* Corresponding author: fcao@umass.edu

Received: 20 September 2024
Accepted: 13 February 2025

Abstract

In this work, we investigate a biased dollar exchange model with collective debt limit, in which agents picked at random (with a rate depending on the amount of dollars they have) give at random time a dollar to another agent being picked uniformly at random, as long as they have at least one dollar in their pockets or they can borrow a dollar from a central bank if the bank is not empty. This dynamics enjoys a mean-field type interaction and partially extends the recent work (Cao and Motsch SIAM J. Appl. Math. 83 (2023) 1872–1891). on a related model. We perform a formal mean-field analysis as the number of agents grows to infinity and as a by-product we discover a two-phase (ODE) dynamics behind the underlying stochastic N-agents dynamics. Numerical experiments on the two-phase (ODE) dynamics are also conducted where we observe the convergence towards its unique equilibrium in the large time limit.