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OALib Journal期刊
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Nucleation of Market Shocks in Sornette-Ide model

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Abstract:

The Sornette-Ide differential equation of herding and rational trader behaviour together with very small random noise is shown to lead to crashes or bubbles where the price change goes to infinity after an unpredictable time. About 100 time steps before this singularity, a few predictable roughly log-periodic oscillations are seen.

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