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Bifurcation Diagram

The financial definition for Bifurcation Diagram:

A graph that shows the critical points where bifurcation occurs, and the possible solutions that exist at that point.




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Bifurcation

Bifurcation
When a non-linear dynamic system develops twice the possible solutions that it had before it passed its critical level. A bifurcation cascade is often called the period doubling route to chaos because the transition from an orderly system to a chaotic system often occurs when the number of possible solutions begins increasing, doubling each time.




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