We introduce tools to capture the dynamics of BIRD three different pathways, in which the synchronization of human decision-making could lead to turbulent periods and contagion phenomena in financial markets.The first pathway is caused when stock market indices, seen as a set of coupled integrate-and-fire oscillators, synchronize in frequency.The integrate-and-fire dynamics happens due to “change blindness”, a trait in human decision-making where people have the tendency to ignore small changes, but take action when a large change happens.The second pathway happens due to feedback mechanisms between Ball - Glove Batting - Mens market performance and the use of certain (decoupled) trading strategies.The third pathway occurs through the effects of communication and its impact on human decision-making.
A model is introduced in which financial market performance has an impact on decision-making through communication between people.Conversely, the sentiment created via communication has an impact on financial market performance.The methodologies used are: agent based modeling, models of integrate-and-fire oscillators, and communication models of human decision-making.