# Master equation for a kinetic model of trading market and its analytic solution

## Author Info

Listed author(s):
• Arnab Chatterjee
• Bikas K. Chakrabarti
• Robin B. Stinchcombe
Registered author(s):

## Abstract

We 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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File URL: http://arxiv.org/pdf/cond-mat/0501413

## Bibliographic Info

Paper provided by arXiv.org in its series Papers with number cond-mat/0501413.

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 Length: Date of creation: Jan 2005 Date of revision: Aug 2005 Publication status: Published in Phys. Rev. E 72 (2005) 026126 Handle: RePEc:arx:papers:cond-mat/0501413 Contact details of provider: Web page: http://arxiv.org/

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