Superstatistics in Econophysics

Details Superstatistics in Econophysics Superstatistics in Econophysics

2003-12-22

arxiv.org/abs/cond-mat/0312568v1

Physics

Condensed Matter

Statistical Mechanics

10 pages, 5 figures

Scientific paper

We consider an ideal closed stock market, in which 100 traders have economic activities. The assets of the traders change through buying and selling stocks. We simulate the assets under conservation of both total currency and total number of stocks. If the traders are identical, then the assets are distributed as a stationary Gaussian. When variety among the traders makes winners and losers, the asset distribution displays power law scaling such as the Pareto law. We discuss this power law scaling from the point of view of superstatistics. It is given as a superposition of scaled distributions for each hierarchical level. The various traders have the same growth rate distribution to keep the scaling.

Affiliated with

Also associated with

No associations

Rating

Superstatistics in Econophysics does not yet have a rating. At this time, there are no reviews or comments for this scientific paper.

If you have personal experience with Superstatistics in Econophysics, we encourage you to share that experience with our LandOfFree.com community. Your opinion is very important and Superstatistics in Econophysics will most certainly appreciate the feedback.

Rate now

Comments { 0 }

Profile ID: LFWR-SCP-O-618098