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A Generalized Continuous Model for Random Markets

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  • R. Lopez-Ruiz
  • E. Shivanian
  • S. Abbasbandy
  • J. L. Lopez

Abstract

A generalized continuous economic model is proposed for random markets. In this model, agents interact by pairs and exchange their money in a random way. A parameter controls the effectiveness of the transactions between the agents. We show in a rigorous way that this type of markets reach their asymptotic equilibrium on the exponential wealth distribution.

Suggested Citation

  • R. Lopez-Ruiz & E. Shivanian & S. Abbasbandy & J. L. Lopez, 2011. "A Generalized Continuous Model for Random Markets," Papers 1104.2187, arXiv.org, revised May 2011.
    • Handle: RePEc:arx:papers:1104.2187
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    References listed on IDEAS

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    1. J. Gonzalez-Estevez & M. G. Cosenza & R. Lopez-Ruiz & J. R. Sanchez, 2008. "Pareto and Boltzmann-Gibbs behaviors in a deterministic multi-agent system," Papers 0801.0969, arXiv.org.
    2. Chatterjee, Arnab & K. Chakrabarti, Bikas & Manna, S.S, 2004. "Pareto law in a kinetic model of market with random saving propensity," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 335(1), pages 155-163.
    3. Jose-Luis Lopez & Ricardo Lopez-Ruiz & Xavier Calbet, 2011. "Exponential wealth distribution in a random market. A rigorous explanation," Papers 1103.5703, arXiv.org, revised May 2011.
    4. Drăgulescu, Adrian & Yakovenko, Victor M., 2001. "Exponential and power-law probability distributions of wealth and income in the United Kingdom and the United States," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 299(1), pages 213-221.
    5. Carmen Pellicer-Lostao & Ricardo Lopez-Ruiz, 2011. "Transition From Exponential To Power Law Income Distributions In A Chaotic Market," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 22(01), pages 21-33.
    6. Adrian Dragulescu & Victor M. Yakovenko, 2000. "Statistical mechanics of money," Papers cond-mat/0001432, arXiv.org, revised Aug 2000.
    7. Ricardo Lopez-Ruiz & Jose-Luis Lopez & Xavier Calbet, 2011. "Exponential wealth distribution: a new approach from functional iteration theory," Papers 1103.1501, arXiv.org.
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