In a recent work, we introduced two models for the dynamics of customers trying to find the business that best corresponds to their expectation for the price of a commodity. In agreement with the empirical data, a power-law distribution for the business sizes was obtained, taking the number of...

The criminal nature of narcotics complicates the direct assessment of a drug community, while having a good understanding of the type of people drawn or currently using drugs is vital for finding effective intervening strategies. Especially for the Russian Federation this is of immediate concern...

This paper tests a simple market fraction asset pricing model with heterogeneous agents. By selecting a set of structural parameters of the model through a systematic procedure, we show that the autocorrelations (of returns, absolute returns and squared returns) of the market fraction model...

The standard Walrasian equilibrium theory requires that the marginal value product of production factor such as labor is equal across firms and industries. However, productivity dispersion is widely observed in the real economy. Search theory allegedly fills this gap by encompassing apparent...

Empirical evidence on the distributional characteristics of common stock returns indicates: (1) A power-law tail index close to three describes the behavior of the positive tail of the survivor function of returns (pr(r x) ~ x^-\alpha), a reflection of fat tails; (2) general linear and...

We develop a simple test for deviations from power law tails, which is based on the asymptotic properties of the empirical distribution function. We use this test to answer the question whether great natural disasters, financial crashes or electricity price spikes should be classified as dragon...

The asset size distribution of US banks is viewed as the result of a scale-free coagulation process. When two banks merge, the assets of the combined institution equals the sum of the assets of the constituent banks. Analysis of the Smoluchowski coagulation equation suggests the emergence of a...

The increasing number of crimes in areas with large concentrations of people have made cities one of the main sources of violence. Understanding characteristics of how crime rate expands and its relations with the cities size goes beyond an academic question, being a central issue for...

In this paper, we investigate the data of industries in China and find that the frequency distributions of fixed assets and fixed-assets’ investment of industries obey power laws. We show that these power-law modes can be explained by the rules of the Simon Model, rather than the existing...

Motivated by recent empirical studies of the length distribution of hospital waiting lists, we introduce and solve a set of models that imitate the formation of waiting lists. Patients arriving in the system must choose a waiting list to join, based on its length. At the same time patients leave...