Life and Luck: Survival of the Fattest

Abstract

Computer simulations were conducted to examine how three different methods of redistributing wealth would affect the survival rate and wealth distribution of players with limited funds who repeatedly played a game of chance. In one simulation the winner of each game was taxed, and the revenues were immediately redistributed equally to the losers. In a second simulation each winner was required to donate some of the winnings to an insurance fund that paid as many players as possible who just went broke enough money to play one more game. In a third simulation multiple winners were allowed in each game, and the winnings divided equally among them. Fourth and fifth simulations combined these methods. Results indicate that increasing the number of winners is far more effective in increasing survival and equalizing wealth than either taxation or insurance.