CED model: Basic theory (Q1600587)

The author defines a CED system with a new operation on two independent sequences of random variables and presents an existence theorem for a sequence of such systems. This operation can stand for minimum, maximum or summation and is useful to model dielectric relaxation phenomena [\textit{A. Jurlewicz, A. Weron} and \textit{K. Weron}, Appl. Math. 23, No. 4, 379--394 (1996; Zbl 0847.60096)] and financial mathematics [\textit{A. Weron, S. Mercik} and \textit{R. Weron}, Physica A 264, 562--569 (1999)]. The author obtains three types of CED distributions that appear as limits of averaged minima of CED sequences and discusses in great detail the power law properties of CED density functions.