Econophysics of Wealth Distributions pp 79-92 | Cite as
Ideal-Gas Like Markets: Effect of Savings
Chapter
Abstract
We discuss the ideal gas like models of a trading market. The effect of savings on the distribution have been thoroughly reviewed. The market with fixed saving factors leads to a Gamma-like distribution. In a market with quenched random saving factors for its agents we show that the steady state income (m) distribution P(m) in the model has a power law tail with Pareto index v equal to unity. We also discuss the detailed numerical results on this model. We analyze the distribution of mutual money difference and also develop a master equation for the time development of P(m). Precise solutions are then obtained in some special cases.
Keywords
Income Distribution Master Equation Pareto Distribution Wealth Distribution Trading Market
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