A common mode of origin of power laws in models of market and earthquake

Bhattacharyya, Pratip ; Chatterjee, Arnab ; Chakrabarti, Bikas K. (2007) A common mode of origin of power laws in models of market and earthquake Physica A: Statistical Mechanics and Its Applications, 381 . pp. 377-382. ISSN 0378-4371

Full text not available from this repository.

Official URL: http://linkinghub.elsevier.com/retrieve/pii/S03784...

Related URL: http://dx.doi.org/10.1016/j.physa.2007.02.096


We show that there is a common mode of origin for the power laws observed in two different models: (i) the Pareto law for the distribution of money among the agents with random-saving propensities in an ideal gas-like market model and (ii) the Gutenberg-Richter law for the distribution of overlaps in a fractal-overlap model for earthquakes. We find that the power laws appear as the asymptotic forms of ever-widening log-normal distributions for the agents' money and the overlap magnitude, respectively. The identification of the generic origin of the power laws helps in better understanding and in developing generalized views of phenomena in such diverse areas as economics and geophysics.

Item Type:Article
Source:Copyright of this article belongs to European Physical Society.
Keywords:Wealth Distribution; Earthquake Model; Log-normal Distribution; Power-law Distribution
ID Code:5892
Deposited On:19 Oct 2010 10:21
Last Modified:20 May 2011 05:01

Repository Staff Only: item control page