The Forbes 400, the Pareto power-law and efficient markets

O. S. Klass*, O. Biham, M. Levy, O. Malcai, S. Solomon

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

38 Scopus citations


Statistical regularities at the top end of the wealth distribution in the United States are examined using the Forbes 400 lists of richest Americans, published between 1988 and 2003. It is found that the wealths are distributed according to a power-law (Pareto) distribution. This result is explained using a simple stochastic model of multiple investors that incorporates the efficient market hypothesis as well as the multiplicative nature of financial market fluctuations.

Original languageAmerican English
Pages (from-to)143-147
Number of pages5
JournalEuropean Physical Journal B
Issue number2
StatePublished - Jan 2007


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