Literature DB >> 16907070

Generic features of the wealth distribution in ideal-gas-like markets.

P K Mohanty1.   

Abstract

We provide an exact solution to the ideal-gas-like models studied in econophysics to understand the microscopic origin of Pareto law. In these classes of models the key ingredient necessary for having a self-organized scale-free steady-state distribution is the trading or collision rule where agents or particles save a definite fraction of their wealth or energy and invest the rest for trading. Using a Gibbs ensemble approach we could obtain the exact distribution of wealth in this model. Moreover we show that in this model (a) good savers are always rich and (b) every agent poor or rich invests the same amount for trading. Nonlinear trading rules could alter the generic scenario observed here.

Year:  2006        PMID: 16907070     DOI: 10.1103/PhysRevE.74.011117

Source DB:  PubMed          Journal:  Phys Rev E Stat Nonlin Soft Matter Phys        ISSN: 1539-3755


  1 in total

1.  Analysis of Solidarity Effect for Entropy, Pareto, and Gini Indices on Two-Class Society Using Kinetic Wealth Exchange Model.

Authors:  Gyuchang Lim; Seungsik Min
Journal:  Entropy (Basel)       Date:  2020-03-28       Impact factor: 2.524

  1 in total

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