Role of Selective Interaction in Wealth Distribution

Abhijit Kar Gupta

Papers from arXiv.org

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.

Date: 2005-09
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://arxiv.org/pdf/physics/0509172 Latest version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:physics/0509172

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().