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Random Market Models with an H-Theorem

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  • Ricardo Lopez-Ruiz
  • Elyas Shivanian
  • Jose-Luis Lopez

Abstract

In this communication, some economic models given by functional mappings are addressed. These are models for random markets where agents trade by pairs and exchange their money in a random and conservative way. They display the exponential wealth distribution as asymptotic equilibrium, independently of the effectiveness of the transactions and of the limitation of the total wealth. The entropy increases with time in these models and the existence of an H-theorem is computationally checked. Also, it is shown that any small perturbation of the models equations make them to lose the exponential distribution as an equilibrium solution.

Suggested Citation

  • Ricardo Lopez-Ruiz & Elyas Shivanian & Jose-Luis Lopez, 2013. "Random Market Models with an H-Theorem," Papers 1307.2169, arXiv.org, revised Jul 2014.
    • Handle: RePEc:arx:papers:1307.2169
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    References listed on IDEAS

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    1. Drăgulescu, Adrian & Yakovenko, Victor M., 2001. "Exponential and power-law probability distributions of wealth and income in the United Kingdom and the United States," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 299(1), pages 213-221.
    2. Adrian Dragulescu & Victor M. Yakovenko, 2000. "Statistical mechanics of money," Papers cond-mat/0001432, arXiv.org, revised Aug 2000.
    3. Shivanian, Elyas & López-Ruiz, Ricardo, 2012. "A new model for ideal gases. Decay to the Maxwellian distribution," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(8), pages 2600-2607.
    4. Levy, Moshe & Solomon, Sorin, 1997. "New evidence for the power-law distribution of wealth," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 242(1), pages 90-94.
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