Why Stock Markets Crash by Didier Sornette
Critical Events in Complex Financial Systems
A synthesis of physics-inspired models and financial economics arguing that market crashes are the endogenous culmination of speculative bubbles driven by positive feedback and herding. It presents empirical evidence that asset prices often follow accelerating power-law trajectories decorated with characteristic log-periodic oscillations before breaks, proposes diagnostic tools to detect such precursors, and examines historical episodes to show how collective behavior and critical phenomena can make extreme events statistically likely rather than rare surprises, with implications for risk management and policy.
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- Published
- 2003
- Nationality
- American
- Length
- Moderate
- Pages
- 400-450
- Original Language
- English
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- Alternate Titles
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