To find the tail of the steady state distribution P(y^) we
sum (£) from X, to oo and obtain p . Thus
(3)
1x1 P <7 K ) = _cC
Evidently the crucial feature of the model is the geometric
distribution of the recurrence time. This relates hers to
the life-time of the persons as income receivers; since
promotion is automatic, the age of the system is measured
in income classes K. The age, or spent life-time, is
geometrically (approximately exponentially) distributed.
Since the income is also an exponential function of K ,
the Pareto law results from an elimination of time K from
1)
the two exponential functions. 7
This is exactly the same rattern of explanation as was used
* - i/;it, 2 3 _
in other fields by Simon £ 1#/ and myself and
which is'directly. descended from Tule CJ i wil ° used it
2.
to explain the frequency of species in genera. According to
'Although Champernowne's x model is more complicated than t
above^the essential features remain the same (oniy^u in
the solution is replaced by t, the solution of a differs:
'equation).