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


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  • P. K. Mohanty
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    We provide an exact solution to the ideal-gas-like models studied in econophysics to understand the microscopic origin of Pareto-law. In these class 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 invests 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.

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    Paper provided by in its series Papers with number physics/0603141.

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    Date of creation: Mar 2006
    Date of revision: Jul 2006
    Publication status: Published in Phys. Rev. E 74, 011117 (2006)
    Handle: RePEc:arx:papers:physics/0603141

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    Cited by:
    1. Chakrabarti, Anindya S., 2011. "An almost linear stochastic map related to the particle system models of social sciences," Physica A: Statistical Mechanics and its Applications, Elsevier, Elsevier, vol. 390(23), pages 4370-4378.
    2. Anindya S. Chakrabarti, 2011. "Firm dynamics in a closed, conserved economy: A model of size distribution of employment and related statistics," Papers 1112.2168,
    3. Anirban Chakraborti & Ioane Muni Toke & Marco Patriarca & Frédéric Abergel, 2011. "Econophysics: agent-based models," Post-Print, HAL hal-00621059, HAL.


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