King effect

Rank-ordering of the population of countries follows a stretched exponential distribution[1] except in the cases of the two "kings": China and India.

In statistics, economics, and econophysics, the king effect is the phenomenon in which the top one or two members of a ranked set show up as clear outliers. These top one or two members are unexpectedly large because they do not conform to the statistical distribution or rank-distribution which the remainder of the set obeys.

Distributions typically followed include the power-law distribution,[2] that is a basis for the stretched exponential function,[1][3] and parabolic fractal distribution. The King effect has been observed in the distribution of:

  • French city sizes (where the point representing Paris is the "king", failing to conform to the stretched exponential[1]), and similarly for other countries with a primate city, such as the United Kingdom (London), and the extreme case of Bangkok (see list of cities in Thailand).
  • Country populations (where only the points representing China and India fail to fit a stretched exponential[1]).

Note, however, that the king effect is not limited to outliers with a positive evaluation attached to their rank: for rankings on an undesirable attribute, there may exist a pauper effect, with a similar detachment of extremely ranked data points from the reasonably distributed portion of the data set.[citation needed]

  1. ^ a b c d Laherrère, J.; Sornette, D. (1998). "Stretched exponential distributions in nature and economy: "fat tails" with characteristic scales". The European Physical Journal B. 2 (4): 525–539. arXiv:cond-mat/9801293. Bibcode:1998EPJB....2..525L. doi:10.1007/s100510050276.
  2. ^ Jayadev, Arjun (2008). "A power law tail in India's wealth distribution: Evidence from survey data". Physica A: Statistical Mechanics and Its Applications. 387 (1): 270–276. Bibcode:2008PhyA..387..270J. doi:10.1016/j.physa.2007.08.049.
  3. ^ Davies, J.A. (2002). "The individual success of musicians, like that of physicists, follows a stretched exponential distribution". The European Physical Journal B - Condensed Matter. 27 (4): 445–447. Bibcode:2002EPJB...27..445D. doi:10.1140/epjb/e2002-00176-y.