Research on the nonlinear models giving theoretical underpinning to equations representing mirror markets as complex dynamical systems is encouraged.
Why some herding- and chartist-behaviors scale up and then die off whereas others result in significant crashes is explained.
The buildup to the 2007 liquidity crisis offers an example of nonlinear scale-free dynamics. Concepts from complexity science, econophysics, and scale-free theory are used to offer further explanation to physicists’ mathematical treatments.