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Kinetic market models with single commodity having price fluctuations


  • Arnab Chatterjee
  • Bikas K. Chakrabarti


We study here numerically the behavior of an ideal gas like model of markets having only one non-consumable commodity. We investigate the behavior of the steady-state distributions of money, commodity and total wealth, as the dynamics of trading or exchange of money and commodity proceeds, with local (in time) fluctuations in the price of the commodity. These distributions are studied in markets with agents having uniform and random saving factors. The self-organizing features in money distribution are similar to the cases without any commodity (or with consumable commodities), while the commodity distribution shows an exponential decay. The wealth distribution shows interesting behavior: Gamma like distribution for uniform saving propensity and has the same power-law tail, as that of the money distribution, for a market with agents having random saving propensity.

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  • Arnab Chatterjee & Bikas K. Chakrabarti, 2006. "Kinetic market models with single commodity having price fluctuations," Papers physics/0609069,, revised Dec 2006.
  • Handle: RePEc:arx:papers:physics/0609069

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    References listed on IDEAS

    1. Rafal Weron & Ingve Simonsen & Piotr Wilman, 2003. "Modeling highly volatile and seasonal markets: evidence from the Nord Pool electricity market," Econometrics 0303007, EconWPA.
    2. Rafal Weron, 2001. "Measuring long-range dependence in electricity prices," Papers cond-mat/0103621,
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    Cited by:

    1. Gao, Li, 2015. "Evolution of consumption distribution and model of wealth distribution in China between 1995 and 2012," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 429(C), pages 76-86.
    2. Venkat Venkatasubramanian, 2010. "What is Fair Pay for Executives? An Information Theoretic Analysis of Wage Distributions," Papers 1002.2269,
    3. Victor M. Yakovenko & J. Barkley Rosser, 2009. "Colloquium: Statistical mechanics of money, wealth, and income," Papers 0905.1518,, revised Dec 2009.

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