Statistical mechanics of money– Dragulescu 2000


If you make a large number of unrealistic assumptions, then you can treat money as a closed system in which the Boltzmann-Gibbs law applies. This law says that the probability distribution of X (originally energy, but here money) follows a power law:

C e^{- epsilon/T}

T is temperature, and C is a normalizing constant

In short, any conserved quantity in a large system will/should have an exponential distribution at equilibrium.

This paper would be interesting if:
money had an equilibrium
money was conserved


Posted on January 5, 2012, in Uncategorized and tagged . Bookmark the permalink. Leave a comment.

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