Abstract
The term “black swan” is a metaphor for outlier events whose statistics are characterized by Pareto's Law and by Zipf's Law; namely, statistics governed by power-law tails. The term “dragon king” is a metaphor for a singular outlier event which, in comparison with all other outlier events, is in a league of its own. As an illustrative example consider the wealth of a family that is sampled at random from a medieval society: the nobility constitutes the black-swan category, and the royal family constitutes the dragon-king category. In this paper we present and analyze a dynamical model that generates, universally and jointly, black swans and dragon kings. According to this model, growing from the microscopic scale to the macroscopic scale, black swans and dragon kings emerge together and invariantly with respect to initial conditions.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
