If the World were a Village of 100 Traders
We consider an ideal closed world, a village, in which only 100 traders have economic activities. The assets of the traders change through buying and selling stocks. We simulate the assets under the conservation of both total currency and total number of stocks. The assets are distributed as a stationary Gaussian for almost. identical traders. When differences of traders make winners and losers in the stock market, the asset distribution displays power law scaling such as the Pareto law .
KeywordsStock Market Financial Market Stock Price Total Asset Total Currency
Unable to display preview. Download preview PDF.
- 1.V. Pareto. Le Cunrs d’Économie Yoliligve, Macmillan, London, (1897).Google Scholar
- 2.J. Voit. The Statistical Mechanics of Financial Markets Springer, (2001).Google Scholar
- 4.A.Sato and H.Takayasu. Physica A250, (1998)231–252.Google Scholar
- 6.H. Aovama, W. Souma, and Y. Fujiwara.. Mathematical Science, 472, (Japanese), (2002) 44–50.Google Scholar