Mathematical analysis of Soros's theory of reflexivity
General Finance
2009-01-29 v1
Abstract
The mathematical model proposed by George Soros for his theory of reflexivity is analyzed under the framework of discrete dynamical systems. We show the importance of the notion of fixed points for explaining the behavior of a reflexive system governed by its cognitive and manipulative functions. The interrelationship between these two functions induces fixed points with different characteristics, which in turn generate various system behaviors including the so-called "boom then bust" phenomenon in Soros's theory.
Keywords
Cite
@article{arxiv.0901.4447,
title = {Mathematical analysis of Soros's theory of reflexivity},
author = {C. P. Kwong},
journal= {arXiv preprint arXiv:0901.4447},
year = {2009}
}
Comments
22 pages, 6 figures