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Wealth Distribution for the Spin Agent Model of the Stock Market
New Phys.: Sae Mulli 2020; 70: 292~298
Published online April 29, 2020;
© 2020 New Physics: Sae Mulli.

Jongsoon PARK1, Youngho PARK2*

1ESENAT RITP, Chungju 27384, Korea
2Korea Institute of Ceramic Engineering and Technology, Jinju 52851, Korea
Correspondence to:
Received December 13, 2019; Revised February 20, 2020; Accepted March 5, 2020.
cc This is an open-access article distributed under the terms of the Creative Commons Attribution Non-Commercial License ( which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.
Since Vilfredo Pareto’s study, the distribution of wealth and income has been the subject of empirical research in the field of finance. A number of researchers in this field have tried to explain the empirical data by using a theoretical and modeling approach. Some results of their researches indicate that the inequality in societies is a universal phenomenon regardless of the era and the region. In this work, we tried to understand the origin of the polarization in societies where polarization is defined as a measure of inequality in the distribution of wealth. For this purpose, we simulated a fictitious stock market by using the Ising spin model proposed by Bornholdt. The result shows that the occurrence of polarization in the market depends on the value of a temperature-like parameter and that a phase transition exists across a critical value of this parameter.
PACS numbers: 64.60.Ht, 89.65.Gh, 87.23.Ge
Keywords: Stock market, Ising model, Agent model

May 2020, 70 (5)
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