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We introduce a model of proportional growth to explain the distribution $P(g)$ of business firm growth rates. The model predicts that $P(g)$ is Laplace in the central part and depicts an asymptotic power-law behavior in the tails with an…

Data Analysis, Statistics and Probability · Physics 2009-11-13 Fabio Pammolli , Dongfeng Fu , S. V. Buldyrev , Massimo Riccaboni , Kaushik Matia , Kazuko Yamasaki , H. E. Stanley

We introduce a model of proportional growth to explain the distribution of business firm growth rates. The model predicts that the distribution is exponential in the central part and depicts an asymptotic power-law behavior in the tails…

Data Analysis, Statistics and Probability · Physics 2009-11-11 Dongfeng Fu , Fabio Pammolli , S. V. Buldyrev , Massimo Riccaboni , Kaushik Matia , Kazuko Yamasaki , H. E. Stanley

Complex systems can be characterized by classes of equivalency of their elements defined according to system specific rules. We propose a generalized preferential attachment model to describe the class size distribution. The model…

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

We consider a preferential growth model where particles are added one by one to the system consisting of clusters of particles. A new particle can either form a new cluster (with probability q) or join an already existing cluster with a…

Statistical Mechanics · Physics 2009-11-07 L. Kullmann , J. Kertesz

We introduce a two-dimensional growth model where every new site is located, at a distance $r$ from the barycenter of the pre-existing graph, according to the probability law $1/r^{2+\alpha_G} (\alpha_G \ge 0)$, and is attached to (only)…

Statistical Mechanics · Physics 2015-06-24 Danyel J. B. Soares , Constantino Tsallis , Ananias M. Mariz , Luciano R. da Silva

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 $M$ items out of $K$, the agent originally in A moves to B. We solve the model analytically in…

Statistical Mechanics · Physics 2018-04-11 José Moran , Jean-Philippe Bouchaud

We introduce and solve a model that mimics the herding effect in financial markets when groups of agents share information. The number of agents in the model is growing and at each time step either (i) with probability $p$ an incoming agent…

Disordered Systems and Neural Networks · Physics 2009-11-07 G. J. Rodgers , Dafang Zheng

We propose a simple preferential attachment model of growing network using the complementary probability of Barab\'asi-Albert (BA) model, i.e., $\Pi(k_i) \propto 1-\frac{k_i}{\sum_j k_j}$. In this network, new nodes are preferentially…

Physics and Society · Physics 2016-01-20 A. Lachgar , A. Achahbar

We study size and growth distributions of products and business firms in the context of a given industry. Firm size growth is analyzed in terms of two basic mechanisms, i.e. the increase of the number of new elementary business units and…

Condensed Matter · Physics 2009-11-10 G. De Fabritiis , F. Pammolli , M. Riccaboni

The key idea of this model is that firms are the result of an evolutionary process. Based on demand and supply considerations the evolutionary model presented here derives explicitly Gibrat's law of proportionate effects as the result of…

General Finance · Quantitative Finance 2015-06-11 Joachim Kaldasch

We introduce a family of one-dimensional geometric growth models, constructed iteratively by locally optimizing the tradeoffs between two competing metrics, and show that this family is equivalent to a family of preferential attachment…

Disordered Systems and Neural Networks · Physics 2007-05-23 N. Berger , C. Borgs , J. T. Chayes , R. M. D'Souza , R. D. Kleinberg

Models based on preferential attachment have had much success in reproducing the power law degree distributions which seem ubiquitous in both natural and engineered systems. Here, rather than assuming preferential attachment, we give an…

Statistical Mechanics · Physics 2007-05-23 N. Berger , C. Borgs , J. T. Chayes , R. M. D'Souza , R. D. Kleinberg

We consider a preferential growth model where particles are added one by one to the system consisting of clusters of particles. A new particle can either form a new cluster (with probability q) or join an already existing cluster with a…

Statistical Mechanics · Physics 2009-10-31 L. Kullmann , J. Kertesz

Complex networks in different areas exhibit degree distributions with heavy upper tail. A preferential attachment mechanism in a growth process produces a graph with this feature. We herein investigate a variant of the simple preferential…

Probability · Mathematics 2018-04-18 Angelica Pachon , Laura Sacerdote , Shuyi Yang

A family of models of growing hypergraphs with preferential rules of new linking is introduced and studied. The model hypergraphs evolve via the hyperedge-based growth as well as the node-based one, thus generalizing the…

Physics and Society · Physics 2023-09-04 Dahae Roh , Kwang-Il Goh

We summarize a book under publication with his title written by the three present authors, on the theory of Zipf's law, and more generally of power laws, driven by the mechanism of proportional growth. The preprint is available upon request…

General Finance · Quantitative Finance 2014-08-26 A. Saichev , Y. Malevergne , D. Sornette

Identifying the generating mechanism of a network is challenging as, more often than not, only snapshots are available, but not the full evolution. One candidate for the generating mechanism is preferential attachment which, in its simplest…

Methodology · Statistics 2025-10-07 Thomas Boughen , Clement Lee , Vianey Palacios Ramirez

We define a class of growing networks in which new nodes are given a spatial position and are connected to existing nodes with a probability mechanism favoring short distances and high degrees. The competition of preferential attachment and…

Probability · Mathematics 2015-03-18 Emmanuel Jacob , Peter Mörters

We address the role of multiplicative stochastic processes in modeling the occurrence of power-law city size distributions. As an explanation of the result of Zipf's rank analysis, Simon's model is presented in a mathematically elementary…

Physics and Society · Physics 2007-05-23 Damian H. Zanette
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