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Co-Evolutionist Stochastic Dynamics: Emergence of Power Laws

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Cognitive Economics

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Abstract

We propose a stochastic generalization of the Lotka-Volterra-Eigen-Schuster systems. In the generalized system, the set of dynamical variables is divided into several subsets, such that the variables within each subset interact with each other more strongly than with those in other subsets. It is shown that the size distribution of the dynamical variables within each subset approach a power-law form, while the exponents that characterize these distributions are different in different subsets. The exponent for each subset is found to depend only on the ratio between the stochastic term and the deterministic additive term. The model can be applied in the context of international trade, where the dynamical variables represent the revenues of firms or income/wealth of individuals.

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Author information

Authors and Affiliations

  1. Racah Institute of Physics, The Hebrew University, Jerusalem, Israel

    Sorin Solomon, Ofer Biham & Ofer Malcai

  2. Department of Physics, Trinity College, Dublin, Ireland

    Peter Richmond

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  1. Sorin Solomon
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  2. Peter Richmond
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  3. Ofer Biham
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  4. Ofer Malcai
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Editor information

Editors and Affiliations

  1. École Polytechnique, CNRS CREA, 1, rue Descartes, 75005, Paris, France

    Paul Bourgine

  2. École Normale Supérieure, LPS (CNRS UMR8550) and CENECC, 24, rue Lhomond, 75231, Paris CEDEX 05, France

    Jean-Pierre Nadal

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Solomon, S., Richmond, P., Biham, O., Malcai, O. (2004). Co-Evolutionist Stochastic Dynamics: Emergence of Power Laws. In: Bourgine, P., Nadal, JP. (eds) Cognitive Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-24708-1_10

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  • DOI: https://doi.org/10.1007/978-3-540-24708-1_10

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-07336-6

  • Online ISBN: 978-3-540-24708-1

  • eBook Packages: Springer Book Archive

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