In the context of kinetic theory of gases, such an exchange model was first investigated by A. Dragulescu and V. Yakovenko. The main modelling effort has been put to introduce the concepts of savings, and taxation in the setting of an ideal gas -like system. Basically, it assumes that in the short-run, an economy remains conserved in terms of income/wealth; therefore law of conservation for income/wealth can be applied. Millions of such conservative transactions lead to a steady state distribution of money (gamma function -like in the Chakraborti-Chakrabarti model with uniform savings, and a gamma-like bulk distribution ending with a Pareto tail in the Chatterjee-Chakrabarti-Manna model with distributed savings) and the distribution converges to it. The distributions derived thus have close resemblance with those found in empirical cases of income/wealth distributions.