Andersen, Jorgen Vitting; Nowak, Andrzej; Rotundo, Giulia; … - arXiv.org - 2009
We use insight from a model of earth tectonic plate movement to obtain a new understanding of the build up and release of stress in the price dynamics of the worlds stock exchanges. Nonlinearity enters the model due to a behavioral attribute of humans reacting disproportionately to big changes....