Transitions Between Different Irregular Dynamical Patterns (IMAGE)
Caption
Variation in expertise and risk-taking behaviors among investors regularly sends markets on roller-coaster rides. Researchers describe the intricate dynamics driving a financial markets model in this week's Chaos. Their model takes aim to simulate asset pricing when mixed groups of investors enter a market. By examining bifurcation conditions, they described transitions between different chaotic dynamical regimes. They showed that their model can reflect the nature of real markets by switching between bear and bull dynamics. This image shows transitions between different irregular dynamical patterns (plotted with distinct colors) by changing the level of trading intensity for speculators of certain types.
Credit
Anastasiia Panchuk
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