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Preferential growth: Solution and application to modeling stock market

L. Kullmann, J. Kertesz

cond-mat.stat-mecharXiv:cond-mat/0105473

Abstract

We consider a preferential growth model where particles are added one by one to the system consisting of clusters of particles. A new particle can either form a new cluster (with probability q) or join an already existing cluster with a probability proportional to the size thereof. We calculate exactly the probability Pi(k,t) that the size of the i-th cluster at time t is k. We applied our model as a background for a microscopic economic model.

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