English

Greedy algorithms and Zipf laws

Statistical Mechanics 2018-04-11 v2 General Finance

Abstract

We consider a simple model of firm/city/etc. growth based on a multi-item criterion: whenever entity B fares better that entity A on a subset of MM items out of KK, the agent originally in A moves to B. We solve the model analytically in the cases K=1K=1 and KK \to \infty. The resulting stationary distribution of sizes is generically a Zipf-law provided M>K/2M > K/2. When MK/2M \leq K/2, no selection occurs and the size distribution remains thin-tailed. In the special case M=KM=K, one needs to regularise the problem by introducing a small "default" probability ϕ\phi. We find that the stationary distribution has a power-law tail that becomes a Zipf-law when ϕ0\phi \to 0. The approach to the stationary state can also been characterized, with strong similarities with a simple "aging" model considered by Barrat & M\'ezard.

Keywords

Cite

@article{arxiv.1801.05279,
  title  = {Greedy algorithms and Zipf laws},
  author = {José Moran and Jean-Philippe Bouchaud},
  journal= {arXiv preprint arXiv:1801.05279},
  year   = {2018}
}
R2 v1 2026-06-22T23:46:48.078Z