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HomeAdvanced Materials ResearchAdvanced Materials Research Vols. 403-408Nonlinear Herding Mechanism and Asset Price...

Nonlinear Herding Mechanism and Asset Price Evolution

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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.

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Periodical:

Advanced Materials Research (Volumes 403-408)

Pages:

328-334

DOI:

https://doi.org/10.4028/www.scientific.net/AMR.403-408.328

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Online since:

November 2011

Authors:

Yong Fang

Keywords:

Asset Price Evolution, Behavioral Parameters, Heterogeneous Expectations, Nonlinear Herding Mechanism, Speculative Bubble

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© 2012 Trans Tech Publications Ltd. All Rights Reserved

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