Economic Bubbles and Financial Pyramids Logistic Analysis and Management

This book presents the reader with an original model to evaluate unstable situations in economics worked out on the basis of logistic analysis. It allows for determining the dependence of such situations on the degree of market saturation. The model allows both for the recognition or evaluation of such situations and their efficient management. The book consists of five chapters. Chapter 1 surveys the works of various scholars who investigated unstable situations in the field of economics. Chapter 2 discusses the methods and models of unstable situation identification and introduces the classification of price bubbles and financial pyramids. It gives the substantiation of the price bubble duration cycle and the scheme of the reasons causing price bubble formation. Chapter 3 is devoted to the substantiation of the logistic model. It offers the formalisation of the sequence of factors and reasons determining price bubble formation describes the mechanism of price bubble formation and extends a new definition of the price bubble. It also discusses the logistic model which can be successfully used for the evaluation of unstable economic situations that encompasses the logistic models of financial pyramid evaluation. The given model allows evaluating the dependence of unstable economic situations on the degree of market saturation. Chapter 4 discusses the worked out model to evaluate unstable situations in economics applied for the analysis of economic situations. Chapter 5 is devoted to the formalisation of the conception of sustained development as well as management of sustained development with the use of the logistic analytical models.