Generic features of the wealth distribution in ideal-gas-like markets

Abstract

We provide an exact solution to the ideal-gas-like models studied in econophysics to understand the microscopic origin of Pareto-law. In these class of models the key ingredient necessary for having a self-organized scale-free steady-state distribution is the trading or collision rule where agents or particles save a definite fraction of their wealth or energy and invests the rest for trading. Using a Gibbs ensemble approach we could obtain the exact distribution of wealth in this model. Moreover we show that in this model (a) good savers are always rich and (b) every agent poor or rich invests the same amount for trading. Nonlinear trading rules could alter the generic scenario observed here.

5 pages, 3 eps figures

Cited by in corpus (11)

• Kinetic Exchange Models for Income and Wealth Distributions
• Gamma-distribution and wealth inequality
• Zipf's law in city size from a resource utilization model
• Ideal-gas like market models with savings: quenched and annealed cases
• Kinetic models for wealth exchange on directed networks
• Agent dynamics in kinetic models of wealth exchange
• Modeling wealth distribution in growing markets
• Kinetic market models with single commodity having price fluctuations
• Poverty Index With Time Varying Consumption and Income Distributions
• Clausius inequality and H-theorems for some models of random wealth exchange
• Economic Inequality: Is it Natural?