scholarly journals Hierarchy and the Power-Law Income Distribution Tail

2018 ◽  
Author(s):  
Blair Fix

What explains the power-law distribution of top incomes? This paper tests the hypothesis that it is firm hierarchy that creates the power-law income distribution tail. Using the available case-study evidence on firm hierarchy, I create the first large-scale simulation of the hierarchical structure of the US private sector. Although not tuned to do so, this model reproduces the power-law scaling of top US incomes. I show that this is purely an effect of firm hierarchy. This raises the possibility that the ubiquity of power-law income distribution tails is due to the ubiquity of hierarchical organization in human societies.

2018 ◽  
Author(s):  
Blair Fix

Based on worldly experience, most people would agree that firms are hierarchically organized, and that pay tends to increase as one moves up the hierarchy. But how this hierarchical structure affects income distribution has not been widely studied. To remedy this situation, this paper presents a new model of income distribution that explores the effects of social hierarchy. This 'hierarchy model' takes the limited available evidence on the structure of firm hierarchies, and generalizes it to create a large-scale simulation of the hierarchical structure of the United States economy. Using this model, I conduct the first quantitative investigation of hierarchy's effect on income distribution. I find that hierarchy plays a dominant role in shaping the tail of US income distribution. The model suggests that hierarchy is responsible for generating the power-law scaling of top incomes. Moreover, I find that hierarchy can be used to unify the study of personal and functional income distribution, as well as to understand historical trends in income inequality.


Energies ◽  
2020 ◽  
Vol 13 (5) ◽  
pp. 1257 ◽  
Author(s):  
Shi Chen ◽  
Hong Zhou ◽  
Jingang Lai ◽  
Yiwei Zhou ◽  
Chang Yu

The ideal distributed network composed of distributed generations (DGs) has unweighted and undirected interactions which omit the impact of the power grid structure and actual demand. Apparently, the coupling relationship between DGs, which is determined by line impedance, node voltage, and droop coefficient, is generally non-homogeneous. Motivated by this, this paper investigates the phase synchronization of an islanded network with large-scale DGs in a non-homogeneous condition. Furthermore, we explicitly deduce the critical coupling strength formula for different weighting cases via the synchronization condition. On this basis, three cases of Gaussian distribution, power-law distribution, and frequency-weighted distribution are analyzed. A synthetical analysis is also presented, which helps to identify the order parameter. Finally, this paper employs the numerical simulation methods to test the effectiveness of the critical coupling strength formula and the superiority over the power-law distribution.


2013 ◽  
Vol 838-841 ◽  
pp. 3260-3267
Author(s):  
Qi Chang Yao ◽  
Xin Feng ◽  
Qi Ming Sun

In online shopping, studies on consumer reviews are mostly based on the Attitude Change Model. Illustrated from the perspective of perceived trustworthiness, however, it is not easy to measure and characterize the subjective perception of consumers. Starting from the inherent property of online reviews and based on the real data of 360buy which is the domestic large-scale B2C commerce website in China, this paper focuses on the interval distribution of consumer reviews and the data for statistical analysis. Research finds that the distribution of reviews interval can be depicted by the power-law function and there is a monotonically increasing relationship between power-exponent and the customers concerns with the commodity, the higher exponent, the attention consumer get. The findings give an objective basis to judge the credibility of online reviews. The relationship between power-exponent and the consumer attention has demonstrated the vital role of consumer attention in online shopping, and then the double parity between attention and exponent will effectively regulate the e-commerce market environment and promote its healthy operation. Tech Publications.


2021 ◽  
Vol 2021 ◽  
pp. 1-10
Author(s):  
Hui Xiong ◽  
Kaiqiang Xie ◽  
Lu Ma ◽  
Feng Yuan ◽  
Rui Shen

Understanding human mobility patterns is of great importance for a wide range of applications from social networks to transportation planning. Toward this end, the spatial-temporal information of a large-scale dataset of taxi trips was collected via GPS, from March 10 to 23, 2014, in Beijing. The data contain trips generated by a great portion of taxi vehicles citywide. We revealed that the geographic displacement of those trips follows the power law distribution and the corresponding travel time follows a mixture of the exponential and power law distribution. To identify human mobility patterns, a topic model with the latent Dirichlet allocation (LDA) algorithm was proposed to infer the sixty-five key topics. By measuring the variation of trip displacement over time, we find that the travel distance in the morning rush hour is much shorter than that in the other time. As for daily patterns, it shows that taxi mobility presents weekly regularity both on weekdays and on weekends. Among different days in the same week, mobility patterns on Tuesday and Wednesday are quite similar. By quantifying the trip distance along time, we find that Topic 44 exhibits dominant patterns, which means distance less than 10 km is predominant no matter what time in a day. The findings could be references for travelers to arrange trips and policymakers to formulate sound traffic management policies.


Author(s):  
M. E. J. Newman ◽  
R. G. Palmer

The models discussed in the last chapter are intriguing, but present a number of problems. In particular, most of the results about them come from computer simulations, and little is known analytically about their properties. Results such as the power-law distribution of extinction sizes and the system's evolution to the "edge of chaos" are only as accurate as the simulations in which they are observed. Moreover, it is not even clear what the mechanisms responsible for these results are, beyond the rather general arguments that we have already given. In order to address these shortcomings, Bak and Sneppen (1993; Sneppen et al. 1995; Sneppen 1995; Bak 1996) have taken Kauffman's ideas, with some modification, and used them to create a considerably simpler model of large-scale coevolution which also shows a power-law distribution of avalanche sizes and which is simple enough that its properties can, to some extent, be understood analytically. Although the model does not directly address the question of extinction, a number of authors have interpreted it, using arguments similar to those of section 1.2.2.5, as a possible model for extinction by biotic causes. The Bak-Sneppen model is one of a class of models that show "self-organized criticality," which means that regardless of the state in which they start, they always tune themselves to a critical point of the type discussed in section 2.4, where power-law behavior is seen. We describe self-organized criticality in more detail in section 3.2. First, however, we describe the Bak-Sneppen model itself. In the model of Bak and Sneppen there are no explicit fitness landscapes, as there are in NK models. Instead the model attempts to mimic the effects of landscapes in terms of "fitness barriers." Consider figure 3.1, which is a toy representation of a fitness landscape in which there is only one dimension in the genotype (or phenotype) space. If the mutation rate is low compared with the time scale on which selection takes place (as Kauffman assumed), then a population will spend most of its time localized around a peak in the landscape (labeled P in the figure).


2020 ◽  
Author(s):  
marco casolino

Abstract Editorial bias and censorship can be quantified studying how the occurrence of the word ‘killed’ (‘morti’ in Italian) changes over time and reported location. To this purpose, we have analyzed the complete online archives of the major US newspaper (The New York Times - NYT) and the three major Italian ones (Il Corriere della Sera - CDS, La Repubblica - REP, La Stampa - STA). After 1960 we find a common trend of decreasing coverage given to violent events in all three Italian newspapers (NYT is more stable), opposite to the growing perceived threat of violence in Italy. In all Italian newspapers we also find that the female/male ratio is about 30% and roughly constant over the years, with only La Repubblica showing an increase of reporting of female deaths of about 3% /year . Even accounting for the lower female casualty rate, especially in work-related accidents, this hints to the presence of some gender bias in the reporting of violent deaths. Historically, we show evidence of censorship in Italian newspapers during WW1 and Italian Fascist regime and estimate that in the period 1923-1943 ’ 57,000 articles (75%) featuring domestic deaths were censored in Italy. We also find that the number of casualties is often (up to 26%) artificially increased to the next multiple of 5 or 10 to emphasize the importance of the article. The only exception to this editorial practice is found in domestic articles by Italian newspapers during the Fascist regime, another effect of censorship trying to downplay domestic casualties. Furthermore, we find that in all newspapers, the distribution Nk of the number of articles involving k persons killed is described by a power law Nk =A*k^(-γ) for 2≤k≤1E6. The value of γ decreases in wartime and increases in peacetime and reflecting how the state of belligerence of a country is being reported. In foreign events, editorial bias results in a break of the power law for 2≤k≤10 resulting in up to 100% articles missing in comparison to what would be expected by a pure power law distribution, which describes the distribution of all domestic articles. The suppression of low casualties articles grows with geographical distance from the publishing nation with a rate higher by a factor 5 in the Italian newspapers than in NYT and by a factor 2 - 4 when considering only countries in Europe (for the Italian newspapers) or America (for NYT), sign that the geographical distance plays a strong role when reporting among countries that share common social traits. These techniques can be be applied in a wider context, e.g. toward specific ethnic groups and contribute to quantitatively assess the freedom of press in a given country.


2018 ◽  
Author(s):  
Blair Fix

What accounts for the growth of US top income inequality? This paper proposes a hierarchical redistribution hypothesis. The idea is that US firms have systematically redistributed income to the top of the corporate hierarchy. I test this hypothesis using a large-scale hierarchy model of the US private sector. My method is to vary the rate that income scales with hierarchical rank within modeled firms. I find that this model is able to reproduce four intercorrelated US trends: (1) the growth of the top 1% income share; (2) the growth of the CEO pay ratio; (3) the growth of the dividends share of national income; and (4) the ‘fattening’ of the entire income distribution tail. This result supports the hierarchical redistribution hypothesis. It is also consistent with the available empirical evidence on within-firm income redistribution.


2015 ◽  
Author(s):  
Andrea Sottoriva ◽  
Trevor Graham

Despite extraordinary efforts to profile cancer genomes on a large scale, interpreting the vast amount of genomic data in the light of cancer evolution and in a clinically relevant manner remains challenging. Here we demonstrate that cancer next-generation sequencing data is dominated by the signature of growth governed by a power-law distribution of mutant allele frequencies. The power-law signature is common to multiple tumor types and is a consequence of the effectively-neutral evolutionary dynamics that underpin the evolution of a large proportion of cancers, giving rise to the abundance of mutations responsible for intra-tumor heterogeneity. Importantly, the law allows the measurement, in each individual cancer, of the in vivo mutation rate and the timing of mutations with remarkable precision. This result provides a new way to interpret cancer genomic data by considering the physics of tumor growth in a way that is both patient-specific and clinically relevant.


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