Stock Market and Motion of a Variable Mass Spring

@inproceedings{Canessa2009StockMA,
  title={Stock Market and Motion of a Variable Mass Spring},
  author={Enrique Canessa},
  year={2009}
}
We establish an analogy between the motion of spring whose mass increases linearly with time and volatile stock market dynamics within an economic model based on simple temporal demand and supply functions [E. Canessa, J. Phys. A 33 (2000) 3637]. The total system energy Et is shown to be proportional to a decreasing time dependent spring constant kt. This model allows to derive log-periodicity cos[log(t−tc)] on commodity prices and oscillations (surplus and shortages) in the level of stocks. We… CONTINUE READING