Evolutionary Dynamics of Social Inequality and Coincidence of Gini and Kolkata indices under Unrestricted Competition (2111.07516v5)

Abstract: Social inequalities are ubiquitous and here we show that the values of the Gini ($g$) and Kolkata ($k$) indices, two generic inequality indices, approach each other (starting from $g = 0$ and $k = 0.5$ for equality) as the competitions grow in various social institutions like markets, universities, elections, etc. It is further showed that these two indices become equal and stabilize at a value (at $g = k \simeq 0.87$) under unrestricted competitions. We propose to view this coincidence of inequality indices as a generalized version of the (more than a) century old 80-20 law of Pareto. Furthermore, the coincidence of the inequality indices noted here is very similar to the ones seen before for self-organized critical (SOC) systems. The observations here, therefore, stand as a quantitative support towards viewing interacting socio-economic systems in the framework of SOC, an idea conjectured for years.