Random trading market: Drawbacks and a realistic modification
Abstract
We point out some major drawbacks in random trading market models and propose a realistic modification which overcomes such drawbacks through `sensible trading'. We apply such trading policy in different situations: a) Agents with zero saving factor b) with constant saving factor and c) with random saving factor --in all the cases the richer agents seem to follow power laws in terms of their wealth (money) distribution which support Pareto's observation.
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