k-Generalized Statistics in Personal Income Distribution

Starting from the generalized exponential function $\exp_{\kappa}(x)=(\sqrt{1+\kappa^{2}x^{2}}+\kappa x)^{1/\kappa}$, with $\exp_{0}(x)=\exp(x)$, proposed in Ref. [G. Kaniadakis, Physica A \textbf{296}, 405 (2001)], the survival function $P_{>}(x)=\exp_{\kappa}(-\beta x^{\alpha})$, where $x\in\mathbf{R}^{+}$, $\alpha,\beta>0$, and $\kappa\in[0,1)$, is considered in order to analyze the data on personal income distribution for Germany, Italy, and the United Kingdom. The above defined distribution is a continuous one-parameter deformation of the stretched exponential function $P_{>}^{0}(x)=\exp(-\beta x^{\alpha})$\textemdash to which reduces as $\kappa$ approaches zero\textemdash behaving in very different way in the $x\to0$ and $x\to\infty$ regions. Its bulk is very close to the stretched exponential one, whereas its tail decays following the power-law $P_{>}(x)\sim(2\beta\kappa)^{-1/\kappa}x^{-\alpha/\kappa}$. This makes the $\kappa$-generalized function particularly suitable to describe simultaneously the income distribution among both the richest part and the vast majority of the population, generally fitting different curves. An excellent agreement is found between our theoretical model and the observational data on personal income over their entire range.Comment: Latex2e v1.6; 14 pages with 12 figures; for inclusion in the APFA5 Proceeding

Zipf's law in Nuclear Multifragmentation and Percolation Theory

We investigate the average sizes of the $n$ largest fragments in nuclear multifragmentation events near the critical point of the nuclear matter phase diagram. We perform analytic calculations employing Poisson statistics as well as Monte Carlo simulations of the percolation type. We find that previous claims of manifestations of Zipf's Law in the rank-ordered fragment size distributions are not born out in our result, neither in finite nor infinite systems. Instead, we find that Zipf-Mandelbrot distributions are needed to describe the results, and we show how one can derive them in the infinite size limit. However, we agree with previous authors that the investigation of rank-ordered fragment size distributions is an alternative way to look for the critical point in the nuclear matter diagram.Comment: 8 pages, 11 figures, submitted to PR

Universal scaling in sports ranking

Ranking is a ubiquitous phenomenon in the human society. By clicking the web pages of Forbes, you may find all kinds of rankings, such as world's most powerful people, world's richest people, top-paid tennis stars, and so on and so forth. Herewith, we study a specific kind, sports ranking systems in which players' scores and prize money are calculated based on their performances in attending various tournaments. A typical example is tennis. It is found that the distributions of both scores and prize money follow universal power laws, with exponents nearly identical for most sports fields. In order to understand the origin of this universal scaling we focus on the tennis ranking systems. By checking the data we find that, for any pair of players, the probability that the higher-ranked player will top the lower-ranked opponent is proportional to the rank difference between the pair. Such a dependence can be well fitted to a sigmoidal function. By using this feature, we propose a simple toy model which can simulate the competition of players in different tournaments. The simulations yield results consistent with the empirical findings. Extensive studies indicate the model is robust with respect to the modifications of the minor parts.Comment: 8 pages, 7 figure

Bidding process in online auctions and winning strategy:rate equation approach

Online auctions have expanded rapidly over the last decade and have become a fascinating new type of business or commercial transaction in this digital era. Here we introduce a master equation for the bidding process that takes place in online auctions. We find that the number of distinct bidders who bid $k$ times, called the $k$-frequent bidder, up to the $t$-th bidding progresses as $n_k(t)\sim tk^{-2.4}$. The successfully transmitted bidding rate by the $k$-frequent bidder is obtained as $q_k(t) \sim k^{-1.4}$, independent of $t$ for large $t$. This theoretical prediction is in agreement with empirical data. These results imply that bidding at the last moment is a rational and effective strategy to win in an eBay auction.Comment: 4 pages, 6 figure

Power-law distributions from additive preferential redistributions

We introduce a non-growth model that generates the power-law distribution with the Zipf exponent. There are N elements, each of which is characterized by a quantity, and at each time step these quantities are redistributed through binary random interactions with a simple additive preferential rule, while the sum of quantities is conserved. The situation described by this model is similar to those of closed $N$-particle systems when conservative two-body collisions are only allowed. We obtain stationary distributions of these quantities both analytically and numerically while varying parameters of the model, and find that the model exhibits the scaling behavior for some parameter ranges. Unlike well-known growth models, this alternative mechanism generates the power-law distribution when the growth is not expected and the dynamics of the system is based on interactions between elements. This model can be applied to some examples such as personal wealths, city sizes, and the generation of scale-free networks when only rewiring is allowed.Comment: 12 pages, 4 figures; Changed some expressions and notations; Added more explanations and changed the order of presentation in Sec.III while results are the sam

Scaling laws of strategic behaviour and size heterogeneity in agent dynamics

The dynamics of many socioeconomic systems is determined by the decision making process of agents. The decision process depends on agent's characteristics, such as preferences, risk aversion, behavioral biases, etc.. In addition, in some systems the size of agents can be highly heterogeneous leading to very different impacts of agents on the system dynamics. The large size of some agents poses challenging problems to agents who want to control their impact, either by forcing the system in a given direction or by hiding their intentionality. Here we consider the financial market as a model system, and we study empirically how agents strategically adjust the properties of large orders in order to meet their preference and minimize their impact. We quantify this strategic behavior by detecting scaling relations of allometric nature between the variables characterizing the trading activity of different institutions. We observe power law distributions in the investment time horizon, in the number of transactions needed to execute a large order and in the traded value exchanged by large institutions and we show that heterogeneity of agents is a key ingredient for the emergence of some aggregate properties characterizing this complex system.Comment: 6 pages, 3 figure

Predicted and Verified Deviations from Zipf's law in Ecology of Competing Products

Zipf's power-law distribution is a generic empirical statistical regularity found in many complex systems. However, rather than universality with a single power-law exponent (equal to 1 for Zipf's law), there are many reported deviations that remain unexplained. A recently developed theory finds that the interplay between (i) one of the most universal ingredients, namely stochastic proportional growth, and (ii) birth and death processes, leads to a generic power-law distribution with an exponent that depends on the characteristics of each ingredient. Here, we report the first complete empirical test of the theory and its application, based on the empirical analysis of the dynamics of market shares in the product market. We estimate directly the average growth rate of market shares and its standard deviation, the birth rates and the "death" (hazard) rate of products. We find that temporal variations and product differences of the observed power-law exponents can be fully captured by the theory with no adjustable parameters. Our results can be generalized to many systems for which the statistical properties revealed by power law exponents are directly linked to the underlying generating mechanism

Generalized (m,k)-Zipf law for fractional Brownian motion-like time series with or without effect of an additional linear trend

We have translated fractional Brownian motion (FBM) signals into a text based on two ''letters'', as if the signal fluctuations correspond to a constant stepsize random walk. We have applied the Zipf method to extract the $\zeta '$ exponent relating the word frequency and its rank on a log-log plot. We have studied the variation of the Zipf exponent(s) giving the relationship between the frequency of occurrence of words of length $m<8$ made of such two letters: $\zeta '$ is varying as a power law in terms of $m$. We have also searched how the $\zeta '$ exponent of the Zipf law is influenced by a linear trend and the resulting effect of its slope. We can distinguish finite size effects, and results depending whether the starting FBM is persistent or not, i.e. depending on the FBM Hurst exponent $H$. It seems then numerically proven that the Zipf exponent of a persistent signal is more influenced by the trend than that of an antipersistent signal. It appears that the conjectured law $\zeta ' = |2H-1|$ only holds near $H=0.5$. We have also introduced considerations based on the notion of a {\it time dependent Zipf law} along the signal.Comment: 24 pages, 12 figures; to appear in Int. J. Modern Phys

Proportionate vs disproportionate distribution of wealth of two individuals in a tempered Paretian ensemble

We study the distribution P(\omega) of the random variable \omega = x_1/(x_1 + x_2), where x_1 and x_2 are the wealths of two individuals selected at random from the same tempered Paretian ensemble characterized by the distribution \Psi(x) \sim \phi(x)/x^{1 + \alpha}, where \alpha > 0 is the Pareto index and $\phi(x)$ is the cut-off function. We consider two forms of \phi(x): a bounded function \phi(x) = 1 for L \leq x \leq H, and zero otherwise, and a smooth exponential function \phi(x) = \exp(-L/x - x/H). In both cases \Psi(x) has moments of arbitrary order. We show that, for \alpha > 1, P(\omega) always has a unimodal form and is peaked at \omega = 1/2, so that most probably x_1 \approx x_2. For 0 < \alpha < 1 we observe a more complicated behavior which depends on the value of \delta = L/H. In particular, for \delta < \delta_c - a certain threshold value - P(\omega) has a three-modal (for a bounded \phi(x)) and a bimodal M-shape (for an exponential \phi(x)) form which signifies that in such ensembles the wealths x_1 and x_2 are disproportionately different.Comment: 9 pages, 8 figures, to appear in Physica

Emergence of Zipf's Law in the Evolution of Communication

Zipf's law seems to be ubiquitous in human languages and appears to be a universal property of complex communicating systems. Following the early proposal made by Zipf concerning the presence of a tension between the efforts of speaker and hearer in a communication system, we introduce evolution by means of a variational approach to the problem based on Kullback's Minimum Discrimination of Information Principle. Therefore, using a formalism fully embedded in the framework of information theory, we demonstrate that Zipf's law is the only expected outcome of an evolving, communicative system under a rigorous definition of the communicative tension described by Zipf.Comment: 7 pages, 2 figure