Dynamics of the Three-Compartment Financial Bubble Model under the Mittag-Leffler Operator

Author:

Li Bo1ORCID,Chen Kaiwen1,Zhang Bo1

Affiliation:

1. School of Finance, Anhui University of Finance and Economics, Bengbu 233030, China

Abstract

This paper presents an investigation into the dynamics of the emerging three-compartment financial bubble problem using a new non-singular kernel Atangana–Baleanu derivative operator. The problem is tested for at least one solution, and a unique root is determined using an iterative Newton approximation method, providing a globally stable fractional analysis technique. Curve sketches of the globalized model are provided, considering integers and other conformable orders. Sensitivities of the fractional order and other model parameters are examined, offering insights into their impact on the system dynamics. This research contributes to understanding financial bubbles and lays the groundwork for future studies in this field.

Funder

Natural Science Foundation of Anhui Province

Science Foundation of the Anhui Education Department

Publisher

MDPI AG

Subject

Statistics and Probability,Statistical and Nonlinear Physics,Analysis

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