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Competitive modes and estimation of ultimate bound sets for a chaotic dynamical financial system

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Abstract

We have investigated the role of competitive mode for the generation of chaotic behavior in a financial dynamical system. Such type of events are very important in the light of stock market crush or volatile behavior. The competitive mode is a good approach other than the fixed point analysis. The character of mode frequencies and the attractor is analyzed numerically . Also, using an analytical method and Lagrange optimization, we were able to calculate the ultimate bound of the chaotic financial system. The method we have presented is simpler and more accurate than other methods that implicitly calculate the final boundary. The estimation of the ultimate bound can be used to study chaos synchronization. Numerical simulations illustrate the analytical results.

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Acknowledgements

The authors express their sincere thanks to the anonymous referees for their rigorous comments and valuable suggestions helping to improve this paper.

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Authors and Affiliations

  1. School of Finance and Accounting, Fuzhou University of International Studies and Trade, Fuzhou, 352020, China

    Fengsheng Chien

  2. Faculty of Business, City university of Macau, Macau, 999078, China

    Fengsheng Chien

  3. Department of Physics, Jadavpur University, Kolkata, 700032, India

    A. Roy Chowdhury

  4. Department of Mathematics and Statistics, University of Neyshabur, Neyshabur, Iran

    Hassan Saberi Nik

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  1. Fengsheng Chien
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  2. A. Roy Chowdhury
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  3. Hassan Saberi Nik
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The authors declare that the study was realized in collaboration with equal responsibility. All authors read and approved the final manuscript.

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Correspondence to A. Roy Chowdhury.

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Chien, F., Chowdhury, A.R. & Nik, H.S. Competitive modes and estimation of ultimate bound sets for a chaotic dynamical financial system. Nonlinear Dyn 106, 3601–3614 (2021). https://doi.org/10.1007/s11071-021-06945-8

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  • DOI: https://doi.org/10.1007/s11071-021-06945-8

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