Ideal-Gas Like Markets: Effect of Savings
Abstract
We discuss the ideal gas like models of a trading market. The effect of savings on the distribution have been thoroughly reviewed. The market with fixed saving factors leads to a Gamma-like distribution. In a market with quenched random saving factors for its agents we show that the steady state income () distribution in the model has a power law tail with Pareto index equal to unity. We also discuss the detailed numerical results on this model. We analyze the distribution of mutual money difference and also develop a master equation for the time development of . Precise solutions are then obtained in some special cases.
Cite
@article{arxiv.physics/0507136,
title = {Ideal-Gas Like Markets: Effect of Savings},
author = {Arnab Chatterjee and Bikas K Chakrabarti},
journal= {arXiv preprint arXiv:physics/0507136},
year = {2008}
}
Comments
14 pages, 6 eps figures, in 'Econophysics of Wealth Distributions', Springer-Verlag Italia, Ed. A. Chatterjee, S. Yarlagadda and B. K. Chakrabarti (2005) pp 79-92; Conf. Proc. Econophys-Kolkata I: International Workshop on Econophysics of Wealth Distributions, Kolkata, India, March 2005. Low resolution figures used