A Heterogeneous Schelling Model for Wealth Disparity and its Effect on Segregation

The Schelling model of segregation was introduced in economics to show how micromotives can drive macrobehavior. Agents on a lattice have two colors and try to move to a different location if the number of their neighbors with a different color exceeds some threshold. Simulations reveal that even such mild local color preferences, or homophily, are sufficient to cause segregation. We propose a stochastic generalization of the Schelling model, based on both race and wealth, to understand how carefully architected placement of incentives, such as urban infrastructure, might enhance or mitigate segregation over time.