Physics – Condensed Matter – Other Condensed Matter
Scientific paper
2004-04-28
Physics
Condensed Matter
Other Condensed Matter
3 page
Scientific paper
We find the wealth distribution for an economic agent in the financial market, in analogy with standard derivation of generaliz Boltzman (Tsallis) factor in statistical mechanics. In this respect, Tsallis entropic index separates two different regimes, the large and small size market. The Pareto like wealth distribution is obtained in the case of small size market. A method for computing the premium is suggested based on the surplus average vanishing.
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