dorsal/arxiv
View SchemaA common origin of the power law distributions in models of market and earthquake
| Authors | Pratip Bhattacharyya, Arnab Chatterjee, Bikas K Chakrabarti |
|---|---|
| Categories | |
| ArXiv ID | physics/0510038 |
| URL | https://arxiv.org/abs/physics/0510038 |
| DOI | 10.1016/j.physa.2007.02.096 |
| Journal | Physica A 381 (2007) 377-382 |
Abstract
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.
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"abstract": "We show that there is a common mode of origin for the power laws observed in\ntwo different models: (i) the Pareto law for the distribution of money among\nthe agents with random saving propensities in an ideal gas-like market model\nand (ii) the Gutenberg-Richter law for the distribution of overlaps in a\nfractal-overlap model for earthquakes. We find that the power laws appear as\nthe asymptotic forms of ever-widening log-normal distributions for the agents\u0027\nmoney and the overlap magnitude respectively. The identification of the generic\norigin of the power laws helps in better understanding and in developing\ngeneralized views of phenomena in such diverse areas as economics and\ngeophysics.",
"arxiv_id": "physics/0510038",
"authors": [
"Pratip Bhattacharyya",
"Arnab Chatterjee",
"Bikas K Chakrabarti"
],
"categories": [
"physics.soc-ph",
"cond-mat.stat-mech",
"q-fin.GN"
],
"doi": "10.1016/j.physa.2007.02.096",
"journal_ref": "Physica A 381 (2007) 377-382",
"title": "A common origin of the power law distributions in models of market and earthquake",
"url": "https://arxiv.org/abs/physics/0510038"
},
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