Economics
Non-normal interactions create socio-economic bubbles
D. Sornette, S. C. Lera, et al.
This groundbreaking research by Didier Sornette, Sandro Claudio Lera, Jianhong Lin, and Ke Wu reveals that non-symmetric and hierarchical network structures play a pivotal role in the emergence of transient bubbles in socio-economic systems. Contrary to existing models, their analysis of meme stocks links bubble size with network non-normality, highlighting that financial crises are inherent in systems characterized by such interactions.
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