New study reveals how income inequality shapes risk aversion in society.
The article explores how people's willingness to take risks is related to income inequality. The researchers created a model to study how wealth is distributed over time, finding that it follows a pattern called weak Pareto laws. This pattern is influenced by how much risk people are willing to take, which is determined by how they interact economically. By understanding this relationship, we can better understand and potentially control the concentration of wealth in society.