Abstract

The mathematical model proposed by George Soros for his theory of reflexivity is analyzed under the framework of discrete dynamical systems. We show the importance of the notion of fixed points for explaining the behavior of a reflexive system governed by its cognitive and manipulative functions. The interrelationship between these two functions induces fixed points with different characteristics, which in turn generate various system behaviors including the so-called “boom then bust ” phenomenon in Soros’s theory. Key words: Soros’s theory of reflexivity, Discrete dynamical systems JEL classifications: B41, C69 1

Citations