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A set of data with positive values follows a Pareto distribution if the log-log plot of value versus rank is approximately a straight line. A Pareto distribution satisfies Zipf's law if the log-log plot has a slope of -1. Since many types…

Economics · Quantitative Finance 2020-06-04 Ricardo T. Fernholz , Robert Fernholz

The different between the inverse power function and the negative exponential function is significant. The former suggests a complex distribution, while the latter indicates a simple distribution. However, the association of the power-law…

Physics and Society · Physics 2018-12-19 Yanguang Chen

Pareto distributions, and power laws in general, have demonstrated to be very useful models to describe very different phenomena, from physics to finance. In recent years, the econophysical literature has proposed a large amount of papers…

Methodology · Statistics 2015-06-16 Pasquale Cirillo

We introduce a non-growth model that generates the power-law distribution with the Zipf exponent. There are N elements, each of which is characterized by a quantity, and at each time step these quantities are redistributed through binary…

Statistical Mechanics · Physics 2012-04-27 Suhan Ree

Power-law distributions with various exponents are studied. We first introduce a simple and generic model that reproduces Zipf's law. We can regard this model both as the time evolution of the population of cities and that of the asset…

Statistical Mechanics · Physics 2007-05-23 Kenji Kawamura , Naomichi Hatano

When the probability of measuring a particular value of some quantity varies inversely as a power of that value, the quantity is said to follow a power law, also known variously as Zipf's law or the Pareto distribution. Power laws appear…

Statistical Mechanics · Physics 2019-09-23 M. E. J. Newman

We perform a quantitative analysis of extensive chess databases and show that the frequencies of opening moves are distributed according to a power-law with an exponent that increases linearly with the game depth, whereas the pooled…

Physics and Society · Physics 2009-11-18 B. Blasius , R. Toenjes

The proportional odds model gives a method of generating new family of distributions by adding a parameter, called tilt parameter, to expand an existing family of distributions. The new family of distributions so obtained is known as…

Statistics Theory · Mathematics 2020-07-28 Pradip Kundu , Asok K. Nanda

An Atlas model is a rank-based system of continuous semimartingales for which the steady-state values of the processes follow a power law, or Pareto distribution. For a power law, the log-log plot of these steady-state values versus rank is…

Economics · Quantitative Finance 2016-03-01 Ricardo T. Fernholz , Robert Fernholz

The discrete Pareto (or Zeta, Zipf) distribution, arises naturally in modeling rank-frequency data across diverse fields such as linguistics, demography, biology, and computer science. Despite its widespread applicability, goodness-of-fit…

Methodology · Statistics 2026-05-08 Deepesh Bhati , Bruno Ebner , Sakshi Khandelwal

The upper tail of a claim size distribution of a property line of business is frequently modelled by Pareto distribution. However, the upper tail does not need to be Pareto distributed, extraordinary shapes are possible. Here, the…

Methodology · Statistics 2020-02-19 Mathias Raschke

In the last years, researchers have realized the difficulties of fitting power-law distributions properly. These difficulties are higher in Zipf's systems, due to the discreteness of the variables and to the existence of two representations…

Data Analysis, Statistics and Probability · Physics 2022-11-29 Alvaro Corral , Isabel Serra , Ramon Ferrer-i-Cancho

Zipf's law is the most common statistical distribution displaying scaling behavior. Cities, populations or firms are just examples of this seemingly universal law. Although many different models have been proposed, no general theoretical…

Statistical Mechanics · Physics 2010-07-05 Bernat Corominas Murtra , Ricard Solé

We present an overview of possible reasons for the appearance of heavy-tailed distributions in applications to the natural sciences. These distributions include the laws of Pareto, Lotka, and some new ones. The reasons are illustrated using…

Physics and Society · Physics 2023-01-24 Lev B. Klebanov , Yulia V. Kuvaeva

Accurate modeling is essential in integer-valued real phenomena, including the distribution of entire data, zero-inflated (ZI) data, and discrete exceedances. The Poisson and Negative Binomial distributions, along with their ZI variants,…

Methodology · Statistics 2025-10-20 Touqeer Ahmad , Irshad Ahmad Arshad

Our contribution is to widen the scope of extreme value analysis applied to discrete-valued data. Extreme values of a random variable $X$ are commonly modeled using the generalized Pareto distribution, a method that often gives good results…

Statistics Theory · Mathematics 2017-07-18 Adrien Hitz , Richard Davis , Gennady Samorodnitsky

The Zipf distribution is a probability distribution widely used by scientists from various disciplines due to its ubiquity. Some of these areas include linguistics, physics, genetics, and sociology, among others. In this paper, it is proved…

Statistics Theory · Mathematics 2025-11-17 Marta Pérez-Casany , Ariel Duarte-López , Jordi Valero

The dependence with text length of the statistical properties of word occurrences has long been considered a severe limitation quantitative linguistics. We propose a simple scaling form for the distribution of absolute word frequencies…

Physics and Society · Physics 2015-06-15 Francesc Font-Clos , Gemma Boleda , Álvaro Corral

A money-based model for the power law distribution (PLD) of wealth in an economically interacting population is introduced. The basic feature of our model is concentrating on the capital movements and avoiding the complexity of micro…

Other Condensed Matter · Physics 2009-11-10 Yan-Bo Xie , Bo Hu , Tao Zhou , Bing-Hong Wang

The power law is useful in describing count phenomena such as network degrees and word frequencies. With a single parameter, it captures the main feature that the frequencies are linear on the log-log scale. Nevertheless, there have been…

Applications · Statistics 2024-07-24 Clement Lee , Emma Eastoe , Aiden Farrell
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