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

Figure 6

Bifurcation diagram versus parameter 𝑒 for the one-dimensional model, under the basic parameter setting: 𝑑=0.35 and 𝑓=0.7. The homoclinic bifurcation of the two symmetric fixed points occurs at 𝑒≃3.89, the reunion of the two disjoint intervals, homoclinic bifurcation of the origin, at 𝑒≃4.5659, while the final bifurcation occurs at 𝑒=𝑒_𝑓≃5.75.