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Kinetic Exchange Models in Economics and Sociology

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  • Sanchari Goswami
  • Anirban Chakraborti

Abstract

In this article, we briefly review the different aspects and applications of kinetic exchange models in economics and sociology. Our main aim is to show in what manner the kinetic exchange models for closed economic systems were inspired by the kinetic theory of gas molecules. The simple yet powerful framework of kinetic theory, first proposed in 1738, led to the successful development of statistical physics of gases towards the end of the 19th century. This framework was successfully adapted to modeling of wealth distributions in the early 2000's. In later times, it was applied to other areas like firm dynamics and opinion formation in the society, as well. We have tried to present the flavour of the several models proposed and their applications, intentionally leaving out the intricate mathematical and technical details.

Suggested Citation

  • Sanchari Goswami & Anirban Chakraborti, 2014. "Kinetic Exchange Models in Economics and Sociology," Papers 1408.1365, arXiv.org.
    • Handle: RePEc:arx:papers:1408.1365
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    References listed on IDEAS

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    1. Chakrabarti,Bikas K. & Chakraborti,Anirban & Chakravarty,Satya R. & Chatterjee,Arnab, 2013. "Econophysics of Income and Wealth Distributions," Cambridge Books, Cambridge University Press, number 9781107013445.
    2. Frédéric Abergel & Anirban Chakraborti & Hideaki Aoyama & B.K. Chakrabarti & Asim Gosh, 2014. "Econophysics of agent-based models," Post-Print hal-01006419, HAL.
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