A behavioral approach to instability pathways in financial markets

Phenomena like imitation, herding and positive feedbacks in the complex financial markets characterize the emergence of endogenous instabilities, which however is still understudied. Here the authors show that the graph-based approach is helpful to timely recognize phases of increasing instability t...

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Autores principales: Alessandro Spelta, Andrea Flori, Nicolò Pecora, Sergey Buldyrev, Fabio Pammolli
Formato: article
Lenguaje:EN
Publicado: Nature Portfolio 2020
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Acceso en línea:https://doaj.org/article/e9fd4bddcd204b84b0027eed5dc38793
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Sumario:Phenomena like imitation, herding and positive feedbacks in the complex financial markets characterize the emergence of endogenous instabilities, which however is still understudied. Here the authors show that the graph-based approach is helpful to timely recognize phases of increasing instability that can drive the system to a new market configuration.