Kinetic market models with single commodity having price fluctuations

Abstract.We study here numerically the behavior of an ideal gas like model of markets having only one non-consumable commodity. We investigate the behavior of the steady-state distributions of money, commodity and total wealth, as the dynamics of trading or exchange of money and commodity proceeds, with local (in time) fluctuations in the price of the commodity. These distributions are studied in markets with agents having uniform and random saving factors. The self-organizing features in money distribution are similar to the cases without any commodity (or with consumable commodities), while the commodity distribution shows an exponential decay. The wealth distribution shows interesting behavior: gamma like distribution for uniform saving propensity and has the same power-law tail, as that of the money distribution, for a market with agents having random saving propensity.

[1]  Bikas K. Chakrabarti,et al.  Econophysics and Sociophysics : Trends and Perspectives , 2006 .

[2]  Per Bak,et al.  How Nature Works , 1996 .

[3]  B. Hayes,et al.  Follow the Money , 2002, American Scientist.

[4]  Generic features of the wealth distribution in ideal-gas-like markets. , 2006, Physical review. E, Statistical, nonlinear, and soft matter physics.

[5]  J. Angle.  The Inequality Process as a wealth maximizing process , 2005 .

[6]  J. Angle.  The Surplus Theory of Social Stratification and the Size Distribution of Personal Wealth , 1986 .

[7]  S. Solomon,et al.  NEW EVIDENCE FOR THE POWER-LAW DISTRIBUTION OF WEALTH , 1997 .

[8]  G. G. Stokes.  "J." , 1890, The New Yale Book of Quotations.

[9]  Bikas K. Chakrabarti,et al.  Statistical mechanics of money: how saving propensity affects its distribution , 2000, cond-mat/0004256.

[10]  J. Skinner,et al.  Do the Rich Save More? , 2004, Journal of Political Economy.

[11]  Bikas K. Chakrabarti,et al.  Ideal Gas-Like Distributions in Economics: Effects of Saving Propensity , 2004 .

[12]  Anders Johansson,et al.  Econophysics and Sociophysics - Trends and Perspectives , 2006 .

[13]  V. Yakovenko,et al.  A study of the personal income distribution in Australia , 2006, physics/0601176.

[14]  Kimmo Kaski,et al.  Statistical model with a standard Gamma distribution. , 2004, Physical review. E, Statistical, nonlinear, and soft matter physics.

[15]  B. McCarl,et al.  Economics , 1870, The Indian medical gazette.

[16]  F. Slanina.  Inelastically scattering particles and wealth distribution in an open economy. , 2003, Physical review. E, Statistical, nonlinear, and soft matter physics.

[17]  Sitabhra Sinha.  Stochastic Maps, Wealth Distribution in Random Asset Exchange Models and the Marginal Utility of Relative Wealth , 2003 .

[18]  Bikas K. Chakrabarti,et al.  Econophysics of Wealth Distributions , 2005 .

[19]  Victor M. Yakovenko,et al.  Statistical mechanics of money , 2000 .

[20]  Dynamics of Money and Income Distributions , 2004, cond-mat/0407770.

[21]  Bikas K. Chakrabarti,et al.  Money in Gas-Like Markets: Gibbs and Pareto Laws , 2003 .

[22]  Arnab Das,et al.  Analytic Treatment of a Trading Market Model , 2003, cond-mat/0304685.

[23]  Bikas K. Chakrabarti,et al.  Pareto Law in a Kinetic Model of Market with Random Saving Propensity , 2004 .

[24]  Marcel Ausloos,et al.  Model of wealth and goods dynamics in a closed market , 2007 .

[25]  B. Hayes.  The American Scientist , 1962, Nature.

[26]  Sitabhra Sinha.  Evidence for Power-law tail of the Wealth Distribution in India , 2006 .

[27]  Arnab Chatterjee,et al.  Master equation for a kinetic model of a trading market and its analytic solution. , 2005, Physical review. E, Statistical, nonlinear, and soft matter physics.

[28]  Jonathan Silver,et al.  Statistical Equilibrium Wealth Distributions in an Exchange Economy with Stochastic Preferences , 2002, J. Econ. Theory.

[29]  V. Pareto,et al.  Vilfredo Pareto. Cours d’Économie Politique , 1897 .