title: Two-phase phenomena, minority games, and herding models.
abstract: The recently discovered two-phase phenomenon in financial markets [Nature 421, 130 (2003)] is examined with the German financial index DAX, minority games, and dynamic herding models. It is observed that the two-phase phenomenon is an important characteristic of financial dynamics, independent of volatility clustering. An interacting herding model correctly produces the two-phase phenomenon.
authors.affiliation: Zhejiang Institute of Modern Physics, Zhejiang University, Hangzhou 310027, People's Republic of China and FB Physik, Universität-Halle, D-06099 Halle, Germany.
authors.forename: B
authors.initials: B
authors.lastname: Zheng
authors.forename: T
authors.initials: T
authors.lastname: Qiu
authors.forename: F
authors.initials: F
authors.lastname: Ren