Power Law Scaling for a System of Interacting Units with Complex Internal Structure

Abstract

We study the dynamics of a system composed of interacting units each with a complex internal structure comprising many subunits. We consider the case in which each subunit grows in a multiplicative manner. We propose a model for such systems in which the interaction among the units is treated in a mean field approximation and the interaction among subunits is nonlinear. To test the model, we identify a large data base spanning 20 years, and find that the model correctly predicts a variety of empirical results.