Physical Illustration of an Unstable Equilibrium: Ball on a Hill

Tipping Point

Comparison of Stable and Unstable Equilibria

Imagine a local market for a specific type of rare collectible where prices have been consistent for months. A rumor starts that a famous celebrity is interested in these collectibles, causing a minor increase in demand and a slight rise in price. This initial price bump is noticed by speculators, who then enter the market, believing prices will continue to climb. Their buying activity further drives up the price, which in turn attracts even more speculators. Based on this chain of events, what is the most likely outcome for the price of these collectibles?

Bank Run Scenario Analysis

Neighborhood Dynamics Analysis

A national currency is held at a fixed value by its central bank, but this position is considered fragile by market analysts. Following an initial disturbance, the situation deteriorates. Arrange the following events in the correct chronological order to show how the system moves away from its initial point of balance.