Chaos Theory: Unpredictable Order in Chaos

Basil John Moore

Chapter 3 in Shaking the Invisible Hand, 2006, pp 43-74 from Palgrave Macmillan

Abstract: Abstract Chaos theory was discovered by Henri Poincaré in 1899 in his attempt to find a solution to the gravitational attraction between a star and its planet (the n-body problem). He succeeded in proving that the problem had no analytical solution. Unlike conventional functions like sine waves, the planets follow complex a-periodic cycles which never exactly repeat themselves.1 During the 1960s scientists with the first computers began to examine how natural systems like the weather change over time. To their astonishment they accidently found that many meteorological events were not haphazard. Lurking within them was a subtle form of order. They labeled this behavior “chaotic,” and a new scientific field “Chaos Theory” grew up to explain nature’s dynamics.2

Keywords: Fractal Dimension; Chaotic System; Stock Price; Chaotic Behavior; Stock Prex (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-51213-9_3

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DOI: 10.1057/9780230512139_3

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