Power Law and Evolutionary Trends in Stock Markets

12 Pages Posted: 14 Apr 2014

See all articles by P. V. (Sundar) Balakrishnan

P. V. (Sundar) Balakrishnan

Univ. of Washington, Bothell

James M. Miller

University of Washington, Bothell - Business

S. Gowri Shankar

University of Washington, Bothell School of Business

Date Written: May 1, 2006

Abstract

We model the distribution of daily stock trading volume using the power law and document a new phenomenon. The power law exponent systematically increases with time suggesting that trading is becoming increasingly concentrated in a subset of stocks.

Keywords: Zipf's Law; Hirschman–Herfindahl Index; Stock trading volume

JEL Classification: G10; H39; D39

Suggested Citation

Balakrishnan, P. V. (Sundar) and Miller, James M. and Shankar, S. Gowri, Power Law and Evolutionary Trends in Stock Markets (May 1, 2006). Economics Letters, Vol. 98, 2008, Available at SSRN: https://ssrn.com/abstract=2424507

P. V. (Sundar) Balakrishnan

Univ. of Washington, Bothell ( email )

18115 Campus Way NE
Bothell, WA 98011-8246
United States
4253525384 (Phone)

HOME PAGE: http://www.uwb.edu/business/faculty/sbalakrishnan

James M. Miller

University of Washington, Bothell - Business ( email )

18115 Campus Way NE
Bothell, WA 98011-8246
United States

S. Gowri Shankar (Contact Author)

University of Washington, Bothell School of Business ( email )

18115 Campus Way NE
Bothell, WA 98011-8246
United States

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