Bubble Phenomena as Structural Effects inAdmissible Domains

Bubble Phenomena as Structural Effects inAdmissible Domains | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Bubble Phenomena as Structural Effects inAdmissible Domains Rogerio Pereira This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-9227955/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract Financial bubbles are typically interpreted as anomalies arising from informational imperfections, behavioral biases, or institutional frictions. Despite extensive theoretical and empirical refinement across these perspectives, bubble-like phenomena remain recurrent across heterogeneous historical and market contexts. This persistence suggests that such phenomena may not be eliminated by epistemological improvements alone. This paper develops a structural interpretation of bubbles in decentralized economic systems characterized by locally interacting agents and admissible state spaces. We consider systems in which locally defined operators generate trajectories over an admissible domain, without encoding global structural distinctions. Within this setting, a fundamental separation arises between regions that are reachable and regions that support sustained dynamics. We define bubble-like trajectories as those that enter regions outside structurally stable regimes while remaining temporarily within them due to endogenous amplification mechanisms. We show that such phenomena arise whenever the reachable set extends beyond the set of stable regimes, and therefore do not depend on specific assets, behavioral assumptions, or informational conditions. The analysis establishes that bubble phenomena are structural effects of admissible domains in systems with decentralized interactions. Their elimination requires transformations of the domain or of the operators that generate trajectories, rather than refinements within a fixed structure. The results provide a unified interpretation of the recurrence of bubbles across domains and clarify the limits of epistemological approaches to their explanation. financial bubbles decentralized interactions economic dynamics admissible domains reachability structural regimes Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-9227955","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":616102676,"identity":"dd24456e-0291-42f6-95d0-93948bdb4524","order_by":0,"name":"Rogerio Pereira","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAA4klEQVRIiWNgGAWjYDADNgYGxgdAmoePFC3MBiAtbCRZJAHVix/It/c+fFxQcU+OT/rws8qvOXYybAzMDx/dwKOFsee4sfGMM8XGbHxpZrdltyUDHcZmbJyDRwuzRBqbNG9bQmIbD4PZbcltzEAtPGzS+LSwyT8DavmXUN/Gw/6tWHJbPWEtPBJsQC0NCQlsPDxmjB+3HSasRYInjdl4xrEEwzYenmJpxm3HediYCfhFvv0Y4+OCmgR5+R72jR9/bqu252dvfvgYnxYQYIYzeFC4xGhh/EGE6lEwCkbBKBh5AAAfbzgmO/oLWQAAAABJRU5ErkJggg==","orcid":"","institution":"National Institute for Space Research","correspondingAuthor":true,"prefix":"","firstName":"Rogerio","middleName":"","lastName":"Pereira","suffix":""}],"badges":[],"createdAt":"2026-03-26 01:39:04","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-9227955/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-9227955/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":106207247,"identity":"d3efb5b9-57d7-4def-94cd-1690b036195b","added_by":"auto","created_at":"2026-04-06 05:57:29","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":278237,"visible":true,"origin":"","legend":"","description":"","filename":"BubblePhenomenaasStructuralEffectsinAdmissibleDomains1.pdf","url":"https://assets-eu.researchsquare.com/files/rs-9227955/v1_covered_1134da30-996b-4565-aa5f-e83858876e5b.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"Bubble Phenomena as Structural Effects inAdmissible Domains","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"financial bubbles, decentralized interactions, economic dynamics, admissible domains, reachability, structural regimes","lastPublishedDoi":"10.21203/rs.3.rs-9227955/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-9227955/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"Financial bubbles are typically interpreted as anomalies arising from informational imperfections, behavioral biases, or institutional frictions. 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