Lin, L.; Sornette, D. - In: The European Journal of Finance 19 (2013) 5, pp. 344-365
We propose two rational expectation models of transient financial bubbles with heterogeneous arbitrageurs and positive feedbacks leading to self-reinforcing transient stochastic faster-than-exponential price dynamics. As a result of the nonlinear feedbacks, the termination of a bubble is found...