Lagrange statistics in systems (markets) with price constraints: Analysis of property, car sales, marriage and job markets by the Boltzmann function and the Pareto distribution

Mimkes, J.; Fruend, Th.; Willis, G.

Lagrange statistics in systems (markets) with price constraints: Analysis of property, car sales, marriage and job markets by the Boltzmann function and the Pareto distribution

Authors

Mimkes, J.

Fruend, Th.

Willis, G.

Description

Statistical models of economic distributions lead to Boltzmann distributions rather than a Pareto power law. This result is supported by two facts: 1. the distributions of income, car sales, marriages or jobs are a matter of chances and luck and not of reason! 2. Data for property, automobile sales, marriages and job markets were analyzed by two models: the Pareto law and the Boltzmann distribution of stochastic systems. In all cases the best fits to data were obtained by the Boltzmann function. This may indicate that the principles of stochastic systems like in physics, chemistry, thermodynamics may also be applied to economic systems.