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Why Stock Markets Crash
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Why Stock Markets Crash: Critical Events in Complex Financial Systems

Didier Sornette

Abstract

The scientific study of complex systems has transformed a wide range of disciplines in recent years, enabling researchers in both the natural and social sciences to model and predict phenomena as diverse as earthquakes, global warming, demographic patterns, financial crises, and the failure of materials. This book applies the author's experience in these areas to propose a simple, powerful, and general theory of how, why, and when stock markets crash. Most attempts to explain market failures seek to pinpoint triggering mechanisms that occur hours, days, or weeks before the collapse. This book ... More

Keywords: market failure, cooperative speculation, stock market prices, complex systems, stock market crash, stock market, bubble, self-organization, Black Monday

Bibliographic Information

Print publication date: 2017 Print ISBN-13: 9780691175959
Published to Princeton Scholarship Online: May 2018 DOI:10.23943/princeton/9780691175959.001.0001

Authors

Affiliations are at time of print publication.

Didier Sornette, author
ETH Zurich