Structure of the Invisible Hand: Hierarchy and Others
Author: | Bc. Aleš Vondra |
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Year: | 2013 - summer |
Leaders: | prof. PhDr. Ladislav Krištoufek Ph.D. |
Consultants: | |
Work type: | Bachelors |
Language: | English |
Pages: | 44 |
Awards and prizes: | |
Link: | |
Abstract: | This thesis explores theoretical underpinnings of one particular branch of current thought on financial market crashes. It is focused on stock markets, but the theory is applicable to forex and commodity markets as well. Through discovery of log-periodic precursors found in stock market prices in advance of almost all major crashes, we are led to search for possible abstract mechanisms leading to this phenomenon. Most prominent of these mechanisms is discrete scale invariance, which in turn is hallmark of hierarchical structure of underlying network. |