Money Distributions in Chaotic Economies
This paper considers the ideal gas-like model of trading markets, where each individual is identified as a gas molecule that interacts with others trading in elastic or money-conservative collisions. Traditionally this model introduces different rules of random selection and exchange between pair agents. Real economic transactions are complex but obviously non-random. Consequently, unlike this traditional model, this work implements chaotic elements in the evolution of an economic system. In particular, we use a chaotic signal that breaks the natural pairing symmetry $(i,j)\Leftrightarrow(j,i)$ of a random gas-like model. As a result of that, it is found that a chaotic market like this can reproduce the referenced wealth distributions observed in real economies (the Gamma, Exponential and Pareto distributions).
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- Champernowne,D. G. & Cowell,F. A., 1999.
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- Sinha, Sitabhra, 2006.
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Elsevier, vol. 359(C), pages 555-562.
- Sitabhra Sinha, 2005. "Evidence for Power-law tail of the Wealth Distribution in India," Papers cond-mat/0502166, arXiv.org.
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