Papers by Author: Yong Fang

Abstract: The present study focuses on the nonlinear herding mechanism in financial markets and provides a possible explanation for the bubble phenomenon. A market model, in which the nonlinear herding mechanism plays a role, is developed. The simulation shows that the odds of occurrence and the strength of bubbles change more intensely with herding coefficient, and are much greater under the nonlinear herding pattern than under the linear type.