Master equation for a kinetic model of trading market and its analytic solution
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.
|Date of creation:||Jan 2005|
|Date of revision:||Aug 2005|
|Publication status:||Published in Phys. Rev. E 72 (2005) 026126|
|Contact details of provider:|| Web page: http://arxiv.org/|