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Inelastically scattering particles and wealth distribution in an open economy

Frantisek Slanina
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Abstract

Using the analogy with inelastic granular gasses we introduce a model for wealth exchange in society. The dynamics is governed by a kinetic equation, which allows for self-similar solutions. The scaling function has a power-law tail, the exponent being given by a transcendental equation. In the limit of continuous trading, closed form of the wealth distribution is calculated analytically.

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BibTeXRIS

Frantisek Slanina. 2003-12-17. Inelastically scattering particles and wealth distribution in an open economy. https://doi.org/10.1103/physreve.69.046102

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