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Modelling savings behavior of agents in the kinetic exchange models of market

Kinetic exchange models have been successful in explaining the shape of the income/wealth distribution in the economies. However, such models usually make some ad-hoc assumptions when it comes to determining the savings factor. Here, we examine a few models in and out of the domain of standard neo-classical economics to explain the savings behavior of the agents. A number of new results are derived and the rest conform with those obtained earlier. Connections are established between the reinforcement choice and strategic choice models with the usual kinetic exchange models.

preprint2010arXivOpen access
Anindya S. Chakrabarti
q-fin.TR
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Anindya S. Chakrabarti

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