The Emergence of <i>Bull and Bear</i> Dynamics in a Nonlinear Model of Interacting Markets

<table>Homoclinic bifurcation of <svg height="11.75" id="M153" style="vertical-align:-0.23206pt" version="1.1" viewbox="0 0 13.175 11.75" width="13.175" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink">
<g transform="matrix(.017,-0,0,-.017,.062,11.4)"><path d="M745 361q0 -166 -116 -272t-291 -106q-136 0 -225.5 83t-89.5 218q0 161 115.5 272t288.5 111q137 0 227.5 -83t90.5 -223zM643 359q0 126 -56 199.5t-167 73.5q-130 0 -213.5 -104t-83.5 -246q0 -117 58 -190.5t165 -73.5q91 0 160.5 52t103 128.5t33.5 160.5z" id="x1D442"></path></g>
</svg>. The two chaotic intervals around <svg height="16.1" id="M154" style="vertical-align:-3.30472pt" version="1.1" viewbox="0 0 17.237499 16.1" width="17.237499" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink">
<g transform="matrix(1.25,0,0,-1.25,90,90)">
<path d="m -71.95,70.93 7.6,0" style="fill:none;stroke:#000000;stroke-width:0.68000001;stroke-linecap:butt;stroke-linejoin:miter;stroke-miterlimit:10;stroke-opacity:1;stroke-dasharray:none"></path>
</g>
<g transform="matrix(.017,-0,0,-.017,.062,11.925)"><path d="M536 404q0 -17 -13.5 -31.5t-26.5 -14.5q-8 0 -15 10q-11 14 -25 14q-22 0 -67 -50q-47 -52 -68 -82l37 -102q31 -88 55 -88t78 59l16 -23q-32 -48 -68.5 -78t-65.5 -30q-19 0 -37.5 20t-29.5 53l-41 116q-72 -106 -114.5 -147.5t-79.5 -41.5q-21 0 -34.5 14t-13.5 37
q0 16 13.5 31.5t28.5 15.5q12 0 17 -11q5 -10 25 -10q22 0 57.5 36t89.5 111l-40 108q-22 58 -36 58q-21 0 -67 -57l-19 20q81 107 125 107q17 0 30 -22t39 -88l22 -55q68 92 108.5 128.5t74.5 36.5q20 0 32.5 -14t12.5 -30z" id="x1D465"></path></g>
<g transform="matrix(.012,-0,0,-.012,9.563,16.013)"><path d="M535 230h-212v-233h-58v233h-213v50h213v210h58v-210h212v-50z" id="x2B"></path></g>
</svg> and around <svg height="16.075001" id="M155" style="vertical-align:-3.27605pt" version="1.1" viewbox="0 0 17.237499 16.075001" width="17.237499" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink">
<g transform="matrix(1.25,0,0,-1.25,90,90)">
<path d="m -71.95,70.93 7.6,0" style="fill:none;stroke:#000000;stroke-width:0.68000001;stroke-linecap:butt;stroke-linejoin:miter;stroke-miterlimit:10;stroke-opacity:1;stroke-dasharray:none"></path>
</g>
<g transform="matrix(.017,-0,0,-.017,.062,11.925)"><path d="M536 404q0 -17 -13.5 -31.5t-26.5 -14.5q-8 0 -15 10q-11 14 -25 14q-22 0 -67 -50q-47 -52 -68 -82l37 -102q31 -88 55 -88t78 59l16 -23q-32 -48 -68.5 -78t-65.5 -30q-19 0 -37.5 20t-29.5 53l-41 116q-72 -106 -114.5 -147.5t-79.5 -41.5q-21 0 -34.5 14t-13.5 37
q0 16 13.5 31.5t28.5 15.5q12 0 17 -11q5 -10 25 -10q22 0 57.5 36t89.5 111l-40 108q-22 58 -36 58q-21 0 -67 -57l-19 20q81 107 125 107q17 0 30 -22t39 -88l22 -55q68 92 108.5 128.5t74.5 36.5q20 0 32.5 -14t12.5 -30z" id="x1D465"></path></g>
<g transform="matrix(.012,-0,0,-.012,9.563,16.013)"><path d="M535 230h-483v50h483v-50z" id="x2212"></path></g>
</svg> merge into a unique chaotic interval for <svg height="11.275" id="M156" style="vertical-align:-0.20474pt" version="1.1" viewbox="0 0 71.262497 11.275" width="71.262497" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink">
<g transform="matrix(.017,-0,0,-.017,.062,10.962)"><path d="M391 364q0 -28 -20.5 -53.5t-50 -43.5t-70 -34t-73.5 -25t-68 -17v-29q0 -48 20 -81t65 -33q73 0 157 76l16 -23q-107 -113 -221 -113q-21 0 -40.5 6.5t-39 22t-31.5 47t-12 75.5q0 69 33.5 139.5t95.5 114.5q77 55 143 55q42 0 69 -24.5t27 -59.5zM313 350
q0 26 -14.5 40.5t-37.5 14.5q-32 0 -44 -7q-82 -46 -104 -175q200 49 200 127z" id="x1D452"></path></g><g transform="matrix(.017,-0,0,-.017,11.809,10.962)"><path d="M535 138h-483v50h483v-50zM536 353q-54 -70 -120 -70q-47 0 -137 43q-78 38 -108 38q-55 0 -91 -57l-31 33q51 74 122 74q45 0 137 -44q76 -37 108 -37q55 0 91 57z" id="x2243"></path></g><g transform="matrix(.017,-0,0,-.017,26.513,10.962)"><path d="M456 178h-96v-72q0 -51 12.5 -62.5t72.5 -16.5v-27h-256v27q65 5 78 17t13 62v72h-260v28q182 271 300 426h40v-407h96v-47zM280 225v295h-2q-107 -148 -196 -295h198z" id="x34"></path></g><g transform="matrix(.017,-0,0,-.017,34.672,10.962)"><path d="M113 -12q-24 0 -39.5 16t-15.5 42q0 24 16 40.5t40 16.5t40 -16.5t16 -40.5q0 -26 -16 -42t-41 -16z" id="x2E"></path></g><g transform="matrix(.017,-0,0,-.017,38.548,10.962)"><path d="M153 550l-26 -186q79 31 111 31q90 0 141.5 -51t51.5 -119q0 -93 -89 -166q-85 -69 -173 -71q-32 0 -61.5 11.5t-41.5 23.5q-18 17 -17 34q2 16 22 33q14 9 26 -1q61 -50 124 -50q60 0 93 43.5t33 104.5q0 69 -41.5 110t-121.5 41q-53 0 -102 -20l38 305h286l6 -8
l-26 -65h-233z" id="x35"></path></g><g transform="matrix(.017,-0,0,-.017,46.707,10.962)"><path d="M137 343l67 33q37 17 63 17q79 0 129.5 -53t50.5 -131q0 -92 -58 -156.5t-147 -64.5t-147 68t-58 182q0 63 17 119t43 95.5t61.5 72t69 52t67.5 31.5q62 22 128 33l6 -32q-56 -11 -108 -35q-149 -71 -184 -231zM227 337q-47 0 -95 -27q-6 -23 -6 -70q0 -93 36 -155.5
t96 -62.5q53 0 78 45.5t25 105.5q0 68 -35 116t-99 48z" id="x36"></path></g><g transform="matrix(.017,-0,0,-.017,54.866,10.962)"><path d="M153 550l-26 -186q79 31 111 31q90 0 141.5 -51t51.5 -119q0 -93 -89 -166q-85 -69 -173 -71q-32 0 -61.5 11.5t-41.5 23.5q-18 17 -17 34q2 16 22 33q14 9 26 -1q61 -50 124 -50q60 0 93 43.5t33 104.5q0 69 -41.5 110t-121.5 41q-53 0 -102 -20l38 305h286l6 -8
l-26 -65h-233z" id="x35"></path></g><g transform="matrix(.017,-0,0,-.017,63.026,10.962)"><path d="M244 635q90 0 143 -72t53 -177q0 -133 -65 -229.5t-171 -139.5q-79 -32 -140 -32l-5 30q109 18 185 91t101 186l-68 -36q-29 -16 -60 -16q-79 0 -129 51.5t-50 130.5q0 80 57 146.5t149 66.5zM228 602q-52 0 -78 -45.5t-26 -98.5q0 -69 36.5 -115.5t97.5 -46.5
q53 0 90 28q4 31 4 66q0 51 -9.5 95.5t-39 80.5t-75.5 36z" id="x39"></path></g>
</svg> . The  remaining parameters are as in Figure <a href="../fig4/">4</a>.</table>

Discrete Dynamics in Nature and Society

fig5

Figure 5

Figure 5: The Emergence of <i>Bull and Bear</i> Dynamics in a Nonlinear Model of Interacting Markets 

Discrete Dynamics in Nature and Society

The Emergence of Bull and Bear Dynamics in a Nonlinear Model of Interacting Markets

Figure 5