Preferential attachment and growth dynamics in complex systems

Kazuko Yamasaki, Kaushik Matia, Sergey V. Buldyrev, Dongfeng Fu, Fabio Pammolli, Massimo Riccaboni, H. Eugene Stanley
2006 Physical Review E  
We introduce a model of proportional growth to explain the distribution P (g) of business firm growth rates. The model predicts that P (g) is Laplace in the central part and depicts an asymptotic power-law behavior in the tails with an exponent ζ = 3. Because of data limitations, previous studies in this field have been focusing exclusively on the Laplace shape of the body of the distribution. We test the model at different levels of aggregation in the economy, from products, to firms, to
more » ... ies, and we find that the its predictions are in good agreement with empirical evidence on both growth distributions and size-variance relationships.
doi:10.1103/physreve.74.035103 pmid:17025688 fatcat:vaqijkrxu5c6jedtbrzoxh6gxi