Chatterjee, Arnab ; Chakrabarti, Bikas K. ; Manna, S. S. (2003) Money in gas-like markets: Gibbs and Pareto laws Physica Scripta, 2003 (T106). pp. 36-38. ISSN 0031-8949
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Official URL: http://iopscience.iop.org/1402-4896/2003/T106/008
Related URL: http://dx.doi.org/10.1238/Physica.Topical.106a00036
Abstract
We consider the ideal-gas models of trading markets, where each agent is identified with a gas molecule and each trading as an elastic or money-conserving (two-body) collision. Unlike in the ideal gas, we introduce a saving propensity λ of agents, such that each agent saves a fraction λ of its money and trades with the rest. We show that the steady-state money or wealth distribution in a market is Gibbs-like for λ = 0, has got a non-vanishing most-probable value for λ ≠ 0 and Pareto-like when λ is widely distributed among the agents. We compare these results with observations on wealth distributions of various countries.
| Item Type: | Article |
|---|---|
| Source: | Copyright of this article belongs to Royal Swedish Academy of Sciences. |
| ID Code: | 5863 |
| Deposited On: | 19 Oct 2010 10:26 |
| Last Modified: | 20 May 2011 07:29 |
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