Youssefmir, Michael; Huberman, Bernardo A; Hogg, Tad - In: Computational Economics 12 (1998) 2, pp. 97-114
We present a dynamical theory of asset price bubbles that exhibits the appearance of bubbles and their subsequent crashes. We show that when speculative trends dominate over fundamental beliefs, bubbles form, leading to the growth of asset prices away from their fundamental value. This growth...