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arxiv: cond-mat/0310343 · v1 · submitted 2003-10-15 · ❄️ cond-mat.stat-mech · q-fin.GN

A distribution function analysis of wealth distribution

classification ❄️ cond-mat.stat-mech q-fin.GN
keywords distributionwealthinteractionentitiesframeworkgivespeoplewealthy
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We develop a general framework to analyze the distribution functions of wealth and income. Within this framework we study wealth distribution in a society by using a model which turns on two-party trading for poor people while for rich people interaction with wealthy entities (huge reservoir) is relevant. At equilibrium, the interaction with wealthy entities gives a power law (Pareto-like) behavior in the wealth distribution while the two party interaction gives a distribution similar to that reported earlier.

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