Analysis of a Heterogeneous Trader Model for Asset Price Dynamics

Figure 3

Phase diagrams illustrating symmetric homoclinic bifurcation. Diagram on right (𝑁=3.010) includes the period-2 attractor basins for the two limit cycles prior to the bifurcation. Diagram at left (𝑁=3.011) shows the attractor formed from the merging limit cycles and resulting loss of local attractor basin structure.

(a)

(b)