Power Law and Evolutionary Trends in Stock Markets
12 Pages Posted: 14 Apr 2014
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: 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
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