Physics – Physics and Society
Scientific paper
2005-10-05
Physica A 381 (2007) 377-382
Physics
Physics and Society
6 pages, RevTeX4, 3 figures (4 eps figure files), thoroughly revised
Scientific paper
10.1016/j.physa.2007.02.096
We show that there is a common mode of origin for the power laws observed in two different models: (i) the Pareto law for the distribution of money among the agents with random saving propensities in an ideal gas-like market model and (ii) the Gutenberg-Richter law for the distribution of overlaps in a fractal-overlap model for earthquakes. We find that the power laws appear as the asymptotic forms of ever-widening log-normal distributions for the agents' money and the overlap magnitude respectively. The identification of the generic origin of the power laws helps in better understanding and in developing generalized views of phenomena in such diverse areas as economics and geophysics.
Bhattacharyya Pratip
Chakrabarti Bikas K.
Chatterjee Arnab
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