@article{Herzog2015,
  author    = {Herzog, Bodo},
  title     = {An econophysics model of financial bubbles},
  journal   = {Natural science},
  volume    = {7},
  doi       = {10.4236/ns.2015.71006},
  institution = {ESB Business School},
  pages     = {55 -- 63},
  year      = {2015},
  abstract  = {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.},
  language  = {en}
}