dorsal/arxiv
View SchemaRole of Selective Interaction in Wealth Distribution
| Authors | Abhijit Kar Gupta |
|---|---|
| Categories | |
| ArXiv ID | physics/0509172 |
| URL | https://arxiv.org/abs/physics/0509172 |
Abstract
In our simplified description `wealth' is money ($m$). A kinetic theory of gas like model of money is investigated where two agents interact (trade) selectively and exchange some amount of money between them so that sum of their money is unchanged and thus total money of all the agents remains conserved. The probability distributions of individual money ($P(m)$ vs. $m$) is seen to be influenced by certain ways of selective interactions. The distributions shift away from Boltzmann-Gibbs like exponential distribution and in some cases distributions emerge with power law tails known as Pareto's law ($P(m) \propto m^{-(1+\alpha)}$). Power law is also observed in some other closely related conserved and discrete models. A discussion is provided with numerical support to have a dig into the emergence of power laws in such models.
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"abstract": "In our simplified description `wealth\u0027 is money ($m$). A kinetic theory of\ngas like model of money is investigated where two agents interact (trade)\nselectively and exchange some amount of money between them so that sum of their\nmoney is unchanged and thus total money of all the agents remains conserved.\nThe probability distributions of individual money ($P(m)$ vs. $m$) is seen to\nbe influenced by certain ways of selective interactions. The distributions\nshift away from Boltzmann-Gibbs like exponential distribution and in some cases\ndistributions emerge with power law tails known as Pareto\u0027s law ($P(m) \\propto\nm^{-(1+\\alpha)}$). Power law is also observed in some other closely related\nconserved and discrete models. A discussion is provided with numerical support\nto have a dig into the emergence of power laws in such models.",
"arxiv_id": "physics/0509172",
"authors": [
"Abhijit Kar Gupta"
],
"categories": [
"physics.soc-ph",
"q-fin.GN"
],
"title": "Role of Selective Interaction in Wealth Distribution",
"url": "https://arxiv.org/abs/physics/0509172"
},
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