TY  - JOUR
U1  - Wissenschaftlicher Artikel
A1  - Herzog, Bodo
T1  - An econophysics model of financial bubbles
JF  - Natural science
N2  - Usually financial crises go along with bubbles in asset prices, such as the housing bubble in the US in 2007. This paper attempts to build a mathematical model of financial bubbles from an econophysics, and thus a new perspective. I find that agents identify bubbles only with a time delay. Furthermore, I demonstrate that the detection of bubbles is different on either the individual or collective point of view. Second, I utilize the findings for a new definition of asset bubbles in finance. Finally, I extend the model to the study of asset price dynamics with news. In conclusion, the model provides unique insights into the properties and developments of financial bubbles.
KW  - financial bubbles
KW  - econophysics
KW  - wave equation
KW  - financial crises
Y1  - 2015
UN  - https://nbn-resolving.org/urn:nbn:de:bsz:rt2-opus4-4856
U6  - https://doi.org/10.4236/ns.2015.71006
DO  - https://doi.org/10.4236/ns.2015.71006
VL  - 7
SP  - 55
EP  - 63
S1  - 9
PB  - Scientific research publishing
CY  - Irvine, California
ER  -