Exponential wealth distribution : a new approach from functional iteration theory

DOI10.1051/PROC/201236015zbMATH Open1338.91109arXiv1103.1501OpenAlexW3121388788MaRDI QIDQ3451602FDOQ3451602

Authors: Ricardo López-Ruiz, Xavier Calbet, José L. López 

Publication date: 17 November 2015

Published in: ESAIM: Proceedings (Search for Journal in Brave)

Abstract: Exponential distribution is ubiquitous in the framework of multi-agent systems. Usually, it appears as an equilibrium state in the asymptotic time evolution of statistical systems. It has been explained from very different perspectives. In statistical physics, it is obtained from the principle of maximum entropy. In the same context, it can also be derived without any consideration about information theory, only from geometrical arguments under the hypothesis of equiprobability in phase space. Also, several multi-agent economic models based on mappings, with random, deterministic or chaotic interactions, can give rise to the asymptotic appearance of the exponential wealth distribution. An alternative approach to this problem in the framework of iterations in the space of distributions has been recently presented. Concretely, the new iteration given by $f_{n+1}(x)=intin{t}_{u+v>x}{f}_n(u)f_n(v)overu+vdudv.$. It is found that the exponential distribution is a stable fixed point of the former functional iteration equation. From this point of view, it is easily understood why the exponential wealth distribution (or by extension, other kind of distributions) is asymptotically obtained in different multi-agent economic models.

Full work available at URL: https://arxiv.org/abs/1103.1501

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zbMATH Keywords

random modelseconophysicsstatistical equilibriumwealth distributions

Mathematics Subject Classification ID

Applications of statistics to economics (62P20) Applications of statistical and quantum mechanics to economics (econophysics) (91B80)

Cites Work

• Information Theory and Statistical Mechanics
• Exponential and power-law probability distributions of wealth and income in the United Kingdom and the United States

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• In search of \(H\)-theorem for Ulam's redistribution of energy problem
• Study of A model for the distribution of wealth
• On a Fokker-Planck equation for wealth distribution
• Exponential and power-law probability distributions of wealth and income in the United Kingdom and the United States
• Excess Wealth Transform with Applications
• The immediate exchange model: an analytical investigation
• Convergence to an exponential wealth distribution in a random market model
• Exponential wealth distribution in a random market. A rigorous explanation

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