This book spans several disciplines, bringing together elements of
mathematics, biology, computing, psychology, finance, and artificial
intelligence. Using an agent-based approach, I have developed a
comprehensive model which is used to model and predict financial
contagion. The innovative feature of my approach may be the application
of Sigmund Freud's structural model of the psyche. By investigating the
neurosis mechanism as it applies to participants in financial markets, I
analyzes, in detail, the destructive impact of the herding effect.