We study the role of heterogeneous volatility in a networked wealth dynamics model and its impact on the wealth condensation transition. Extending the Bouchaud–Mézard framework, we introduce binary volatility in networks and investigate how its configuration affects the effective power-law tail exponent of the wealth distribution. Using a stochastic block model, we control the mixing between volatility groups and show that the effective exponent is governed not only by the global parameter $\mathrm{\Lambda }=2J/{\beta }^2$ but also by the volatility configuration in the network. We find that local interactions between nodes with different volatility induce the neutralization of group-wise exponents, which lowers the aggregate tail exponent and yields a condensation transition across ${\gamma }_{\mathrm{c}}=2$. Our results identify volatility mixing as another control mechanism for wealth condensation and highlight the importance of noise heterogeneity in nonequilibrium systems on networks.

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• Complex systems
• Econophysics
• Social systems