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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 stochastic motion in a nonhomogeneous medium with traps is studied and diffusion properties of that system are discussed. The particle is subjected to a stochastic stimulation obeying a general L\'evy stable statistics and experiences…

Statistical Mechanics · Physics 2015-06-11 Tomasz Srokowski

Power law distributions characterise several natural and social phenomena. The Zipf law for cities is one of those. The study views the question of whether that global regularity is independent of different spatial distributions of cities.…

Physics and Society · Physics 2021-06-09 Rolf Bergs

A simple computer simulation model of a closed market on a fixed network with free flow of goods and money is introduced. The model contains only two variables : the amount of goods and money beside the size of the system. An initially flat…

Adaptation and Self-Organizing Systems · Physics 2012-09-25 Marcel Ausloos , Andrzej Pekalski

We consider stochastic point processes generating time series exhibiting power laws of spectrum and distribution density (Phys. Rev. E 71, 051105 (2005)) and apply them for modeling the trading activity in the financial markets and for the…

Data Analysis, Statistics and Probability · Physics 2015-05-18 B. Kaulakys , M. Alaburda , V. Gontis

We investigate the detailed dynamics of gains and losses made by agents in some kinetic models of wealth exchange. The concept of a walk in an abstract gain-loss space for the agents had been introduced in an earlier work. For models in…

Physics and Society · Physics 2013-05-29 Sanchari Goswami , Arnab Chatterjee , Parongama Sen

We show that, in conserved-mass transport processes, the steady-state distribution of mass in a subsystem is uniquely determined from the functional dependence of variance of the subsystem mass on its mean, provided that joint mass…

Statistical Mechanics · Physics 2014-03-17 Sayani Chatterjee , Punyabrata Pradhan , P. K. Mohanty

This paper studies stability of the exponential utility maximization when there are small variations on agent's utility function. Two settings are considered. First, in a general semimartingale model where random endowments are present, a…

Portfolio Management · Quantitative Finance 2013-09-04 Hao Xing

The voter model with memory-dependent dynamics is theoretically and numerically studied at the mean-field level. The `internal age', or time an individual spends holding the same state, is added to the set of binary states of the…

Physics and Society · Physics 2019-09-06 Antonio F. Peralta , Nagi Khalil , Raul Toral

Starting from the model of continuous time random walk, we focus our interest on random walks in which the probability distributions of the waiting times and jumps have fat tails characterized by power laws with exponent between 0 and 1 for…

Probability · Mathematics 2008-01-03 Rudolf Gorenflo , Entsar A. A. Abdel-Rehim

Let $T\$ be a stopping time associated with a sequence of independent random variables $Z_{1},Z_{2},...$ . By applying a suitable change in the probability measure we present relations between the moment or probability generating functions…

Statistics Theory · Mathematics 2011-06-28 M. V. Boutsikas , A. C. Rakitzis , D. L. Antzoulakos

It is very important to understand urban mobility patterns because most trips are concentrated in urban areas. In the paper, a new model is proposed to model collective human mobility in urban areas. The model can be applied to predict…

Physics and Society · Physics 2014-10-28 Xiao Liang , Jichang Zhao , Li Dong , Ke Xu

Recently, there has been a growing interest in developing inventory control policies which are robust to model misspecification. One approach is to posit that nature selects a worst-case distribution for any stochastic primitives from some…

Optimization and Control · Mathematics 2018-08-21 Linwei Xin , David A. Goldberg

Studies of collective human behavior in the social sciences, often grounded in details of actions by individuals, have much to offer `social' models from the physical sciences concerning elegant statistical regularities. Drawing on…

Physics and Society · Physics 2009-03-17 R. Alexander Bentley , Paul Ormerod , Michael Batty

We study a model for opinion formation which incorporates three basic ingredients for the evolution of the opinion held by an individual: imitation, influence of fashion and randomness. We show that in the absence of fashion, the model…

Statistical Mechanics · Physics 2009-11-10 Claudio J. Tessone , Raul Toral

In this short paper, we overview and extend the results of our papers cond-mat/0001432, cond-mat/0008305, and cond-mat/0103544, where we use an analogy with statistical physics to describe probability distributions of money, income, and…

Statistical Mechanics · Physics 2008-12-02 Adrian A. Dragulescu , Victor M. Yakovenko

We extend a generic class of systems which have previously been shown to spontaneously develop scaling (power law) distributions of their elementary degrees of freedom. While the previous systems were linear and exploded exponentially for…

adap-org · Physics 2009-10-28 S. Solomon , M. Levy

We show that energy concepts can contribute to the understanding of human travel behaviour. First, the average travel times for different modes of transportation are inversely proportional to the energy consumption rates measured for the…

Statistical Mechanics · Physics 2009-11-10 Robert Koelbl , Dirk Helbing

Economy is demanding new models, able to understand and predict the evolution of markets. To this respect, Econophysics is offering models of markets as complex systems, such as the gas-like model, able to predict money distributions…

Chaotic Dynamics · Physics 2010-08-05 Carmen Pellicer-Lostao , Ricardo Lopez-Ruiz

Understanding consumption dynamics and its impact on the whole economy and welfare within the present economic crisis is not an easy task. Indeed the level of consumer demand for different goods varies with the prices, consumer incomes and…

General Finance · Quantitative Finance 2017-05-11 Roberto De Luca , Marco Di Mauro , Angelo Falzarano , Adele Naddeo