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Master equation for a kinetic model of a trading market and its analytic solution.

Abstract:
We analyze an ideal-gas-like model of a trading market with quenched random saving factors for its agents and show that the steady state income (m) distribution P(m) in the model has a power law tail with Pareto index nu exactly equal to unity, confirming the earlier numerical studies on this model. The analysis starts with the development of a master equation for the time development of P(m) . Precise solutions are then obtained in some special cases.
Publication status:
Published

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Publisher copy:
10.1103/physreve.72.026126

Authors


Chatterjee, A More by this author
Chakrabarti, BK More by this author
More by this author
Institution:
University of Oxford
Department:
Oxford, MPLS, Physics
Journal:
Physical review. E, Statistical, nonlinear, and soft matter physics
Volume:
72
Issue:
2 Pt 2
Pages:
026126
Publication date:
2005-08-05
DOI:
EISSN:
1550-2376
ISSN:
1539-3755
URN:
uuid:097b07d1-ce17-4399-be59-c7204ef32d79
Source identifiers:
24151
Local pid:
pubs:24151
Language:
English

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