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Logistic Function in Large Financial Crashes

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The Logistic Map and the Route to Chaos

Part of the book series: Understanding Complex Systems ((UCS))

Summary

This chapter examines the signatures that arise after large financial crashes in order to evidence the presence of logistic growth in indices of markets that validates the hypothesis of symmetry on the trend before and after the crash. It is also shown how the probability meaning of the logistic function can be exploited in order to set up a bayesian analysis model. The large crash in the NASDAQ 100 composite index which occurred in April 2000 is presented as a case study.

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Author information

Authors and Affiliations

  1. Department of Business, Technological and Quantitative Studies, Faculty of Economics, University of Tuscia, Viterbo, Italy, 01100

    G. Rotundo

Authors
  1. G. Rotundo
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Editor information

Editors and Affiliations

  1. Institut de Physique, Université de Liège, B5, Sart Tilman, 4000, Liège, Belgium

    Marcel Ausloos

  2. Royal Military Academy/ELEC, Avenue de la, Renaissancelaan 30, 1000, Brussels, Belgium

    Michel Dirickx

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© 2006 Springer-Verlag Berlin Heidelberg

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Rotundo, G. (2006). Logistic Function in Large Financial Crashes. In: Ausloos, M., Dirickx, M. (eds) The Logistic Map and the Route to Chaos. Understanding Complex Systems. Springer, Berlin, Heidelberg. https://doi.org/10.1007/3-540-32023-7_14

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