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Financial Market Models

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Complexity and Synergetics

Abstract

The dynamics of financial markets are discussed. After a brief introduction of the price formation process, we review the statistical features (also known as “stylized facts”) of stock return time series, which exhibit fat tails and intermittent periods of higher or lower volatility. Several models aimed at understanding the mechanisms that lead to these seemingly ubiquitous features of financial markets are then reviewed. Those models have largely been developed within the Econophysics community but we emphasize here that they all contain elements consistent with a Synergetic approach.

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Author information

Authors and Affiliations

  1. Cerebellum Capital, San Francisco, CA, USA

    Lisa Borland

Authors
  1. Lisa Borland
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Correspondence to Lisa Borland .

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Editors and Affiliations

  1. Institute of Experimental Physics, Otto-von-Guericke University Magdeburg, Magdeburg, Germany

    Stefan C. Müller

  2. Department of Physical Chemistry, Fritz-Haber-Institute of the MPG, Berlin, Germany

    Peter J. Plath

  3. Institute of Physics, Complex Systems, Technical University Chemnitz, Chemnitz, Germany

    Günter Radons

  4. Center for Complex Systems and Brain Sciences, Florida Atlantic University, Boca Raton, Florida, USA

    Armin Fuchs

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Borland, L. (2018). Financial Market Models. In: Müller, S., Plath, P., Radons, G., Fuchs, A. (eds) Complexity and Synergetics. Springer, Cham. https://doi.org/10.1007/978-3-319-64334-2_20

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  • DOI: https://doi.org/10.1007/978-3-319-64334-2_20

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-64333-5

  • Online ISBN: 978-3-319-64334-2

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