Master equation for a kinetic model of trading market and its analytic solution
AbstractWe analyze an ideal gas like model of a trading market with quenched random saving factors for its agents and show that the steady state income ($m$) distribution $P(m)$ in the model has a power law tail with Pareto index $\nu$ exactly equal to unity, confirming the earlier numerical studies on this model. The analysis starts with the development of a master equation for the time development of $P(m)$. Precise solutions are then obtained in some special cases.
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Bibliographic InfoPaper provided by arXiv.org in its series Papers with number cond-mat/0501413.
Date of creation: Jan 2005
Date of revision: Aug 2005
Publication status: Published in Phys. Rev. E 72 (2005) 026126
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