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Pareto law, which states that wealth distribution in societies have a power-law tail, has been a subject of intensive investigations in statistical physics community. Several models have been employed to explain this behavior. However, most…

Trading and Market Microstructure · Quantitative Finance 2009-11-13 M. Ali Saif , Prashant M. Gade

Public Goods Games represent one of the most useful tools to study group interactions between individuals. However, even if they could provide an explanation for the emergence and stability of cooperation in modern societies, they are not…

Physics and Society · Physics 2016-05-05 Sandro Meloni , Cheng-Yi Xia , Yamir Moreno

We analyze a class of energy and wealth redistribution models. We characterize their stationary measures and show that they have a discrete dual process. In particular we show that the wealth distribution model with non-zero propensity can…

Probability · Mathematics 2014-03-05 Pasquale Cirillo , Frank Redig , Wioletta Ruszel

We study a stochastic $N$-particle system representing economic agents in a population randomly exchanging their money, which is associated to a class of one-dimensional kinetic equations modelling the evolution of the distribution of…

Probability · Mathematics 2018-09-17 Roberto Cortez

Multivariate generalized Pareto distributions arise as the limit distributions of exceedances over multivariate thresholds of random vectors in the domain of attraction of a max-stable distribution. These distributions can be parametrized…

Statistics Theory · Mathematics 2017-05-24 Holger Rootzén , Johan Segers , Jennifer L. Wadsworth

The paper deals with a new class of random walks strictly connected with the Pareto distribution. We consider stochastic processes in the sense of generalized convolution or weak generalized convolution following the idea given in [1]. The…

Probability · Mathematics 2014-12-02 Barbara H. Jasiulis-Gołdyn

Optimization and expansion are two modes of staged evolution of complex systems where macroscopic observables change at a decreasing, respectively increasing, rate. A prime example of evolutionary expansion, Gross Domestic Product (GDP)…

Physics and Society · Physics 2022-11-30 Paolo Sibani , Steen Rasmussen , Per Lyngs Hansen

The distribution of wealth in the Hungarian medieval aristocratic society is reported and studied. The number of serf families belonging to a noble is taken as a measure of the corresponding wealth. Our results reveal the power-law nature…

Physics and Society · Physics 2007-05-23 G. Hegyi , Z. Neda , M. A. Santos

A mechanism is proposed for the appearance of power law distributions in various complex systems. It is shown that in a conservative mechanical system composed of subsystems with different numbers of degrees of freedom a robust power-law…

Statistical Mechanics · Physics 2018-01-03 Anirban Chakraborti , Marco Patriarca

We study the Immediate Exchange model, recently introduced by Heinsalu and Patriarca [Eur. Phys. J. B 87: 170 (2014)], who showed by simulations that the wealth distribution in this model converges to a Gamma distribution with shape…

General Finance · Quantitative Finance 2015-06-23 Guy Katriel

Simple agent based exchange models are a commonplace in the study of wealth distribution of artificial societies. Generally, each agent is characterized by its wealth and by a risk-aversion factor, and random exchanges between agents allow…

Adaptation and Self-Organizing Systems · Physics 2009-11-11 G. M. Caon , S. Goncalves , J. R. Iglesias

We investigate the wealth evolution in a system of agents that exchange wealth through a disordered network in presence of an additive stochastic Gaussian noise. We show that the resulting wealth distribution is shaped by the degree…

Statistical Mechanics · Physics 2008-12-02 T. Di Matteo , T. Aste , S. T. Hyde

We consider a simple mathematical model of gradual Darwinian evolution in continuous time and continuous trait space, due to intraspecific competition for common resource in an asexually reproducing population in constant environment, while…

Populations and Evolution · Quantitative Biology 2014-03-27 Vadim N. Biktashev

Random multiplicative growth with redistribution generates stationary Pareto wealth tails in the Bouchaud-M\'ezard model, but assumes a fixed multiplicative noise intensity. This is restrictive for physical and financial growth processes,…

Disordered Systems and Neural Networks · Physics 2026-05-20 Maxence Arutkin , Alexandre Vallée

This study is a detailed analysis of Speculation Game, a minimal agent-based model of financial markets, in which the round-trip trading and the dynamic wealth evolution with variable trading volumes are implemented. Instead of herding…

Statistical Finance · Quantitative Finance 2019-09-10 Kei Katahira , Yu Chen

In the spirit of the many recent simple models of evolution inspired by statistical physics, we put forward a simple model of the evolution of such models. Like its objects of study, it is (one supposes) in principle testable and capable of…

adap-org · Physics 2007-05-23 Cosma Rohilla Shalizi , William A. Tozier

In this work we use an inelastic scattering process of particles to propose a model able to reproduce the salient features of the wealth distribution in an economy by including taxes to each trading process and redistributing that collected…

General Finance · Quantitative Finance 2008-12-02 Sebastian D. Guala

The rich-get-richer mechanism (agents increase their ``wealth'' randomly at a rate proportional to their holdings) is often invoked to explain the Pareto power-law distribution observed in many physical situations, such as the degree…

General Finance · Quantitative Finance 2008-12-02 James P. Bagrow , Jie Sun , Daniel ben-Avraham

Pareto's law states that the distribution of personal income obeys a power-law in the high-income range, and has been supported by international observations. Researchers have proposed models over a century since its discovery. However, the…

Disordered Systems and Neural Networks · Physics 2009-11-07 Yoshi Fujiwara , Wataru Souma , Hideaki Aoyama , Taisei Kaizoji , Masanao Aoki

High frequency data in finance have led to a deeper understanding on probability distributions of market prices. Several facts seem to be well stablished by empirical evidence. Specifically, probability distributions have the following…

Statistical Mechanics · Physics 2009-10-31 Jaume Masoliver , Miquel Montero , Josep M. Porra