Power law distribution of wealth in population based on a modified Equíluz-Zimmermann model.
We propose a money-based model for the power law distribution (PLD) of wealth in an economically interacting population. It is introduced as a modification of the Equíluz and Zimmermann (EZ) model for crowding and information transmission in financial markets. Still, it must be stressed that in the EZ model a PLD without exponential correction is obtained only for a particular parameter, while our pattern will give the exact PLD within a wide range. The PLD exponent depends on the model parameters in a non-trivial way and is exactly calculated in this paper. The numerical results are in excellent agreement with the analytic prediction, and also comparable with empirical data of wealth distribution.
Xie
Yan-Bo
YB
Department of Modern Physics and The Nonlinear Science Center, University of Science and Technology of China, Hefei 230026, China.
Wang
Bing-Hong
BH
Hu
Bo
B
Zhou
Tao
T