We analyze an ideal-gas-like model of a trading market with quenched random saving factors for its agents and show that the steady state income (m) distribution P(m) in the model has a power law tail with Pareto index nu exactly equal to unity, confirming the earlier numerical studies on this model. The analysis starts with the development of a master equation for the time development of P(m) . Precise solutions are then obtained in some special cases.
No takes yet. Share an insight, caveat, or question.
Chatterjee et al. (2005) studied this question.
Synapse has enriched one closely related paper. Consider it for comparative context: