Arnab Chatterjee

Pareto law in a kinetic model of market with random saving propensity

We have numerically simulated the ideal-gas models of trading markets, where each agent is identified with a gas molecule and each trading as an elastic or money-conserving two-body collision. Unlike in the ideal gas, we introduce (quenched) saving propensity of the agents, distributed widely between the agents (0⩽λ<1). The system remarkably self-organizes to a critical Pareto distribution of money P(m)∼m−(ν+1) with ν≃1. We analyze the robustness (universality) of the distribution in the model. We also argue that although the fractional saving ingredient is a bit unnatural one in the context of gas models, our model is the simplest so far, showing self-organized criticality, and combines two century-old distributions: Gibbs (1901) and Pareto (1897) distributions.

Kinetic exchange models for income and wealth distributions

Abstract.Increasingly, a huge amount of statistics have been gathered which clearly indicates that income and wealth distributions in various countries or societies follow a robust pattern, close to the Gibbs distribution of energy in an ideal gas in equilibrium. However, it also deviates in the low income and more significantly for the high income ranges. Application of physics models provides illuminating ideas and understanding, complementing the observations.

Master equation for a kinetic model of a trading market and its analytic solution

We analyze an ideal-gas-like model of a trading market with quenched random saving factors for its agents and show that the steady state income (m) distribution P(m) in the model has a power law tail with Pareto index nu exactly equal to unity, confirming the earlier numerical studies on this model. The analysis starts with the development of a master equation for the time development of P(m) . Precise solutions are then obtained in some special cases.

Money in gas-like markets: Gibbs and Pareto laws

We consider the ideal-gas models of trading markets, where each agent is identified with a gas molecule and each trading as an elastic or money-conserving (two-body) collision. Unlike in the ideal gas, we introduce saving propensity

Statistical mechanics of competitive resource allocation using agent-based models

\lambda

Universality in voting behavior: an empirical analysis

of agents, such that each agent saves a fraction

The Kolkata Paise Restaurant problem and resource utilization

\lambda

Disorder induced phase transition in kinetic models of opinion dynamics

of its money and trades with the rest. We show the steady-state money or wealth distribution in a market is Gibbs-like for

Econophysics of Markets and Business Networks : Proceedings of the Econophys-Kolkata III

\lambda=0

A new route to Explosive Percolation

, has got a non-vanishing most-probable value for