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Critical infrastructure networks--including transportation, power grids, and communication systems--exhibit complex interdependencies that can lead to cascading failures with catastrophic consequences. These disasters often originate from…

Physics and Society · Physics 2025-06-23 Mary Lai O. Salvaña , Harold Jay M. Bolingot , Gregory L. Tangonan

A classical model for social-influence-driven opinion change is the threshold model. Here we study cascades of opinion change driven by threshold model dynamics in the case where multiple {\it initiators} trigger the cascade, and where all…

Physics and Society · Physics 2013-08-06 P. Singh , S. Sreenivasan , B. K. Szymanski , G. Korniss

We provide an overview of the relationship between financial networks and systemic risk. We present a taxonomy of different types of systemic risk, differentiating between direct externalities between financial organizations (e.g.,…

Risk Management · Quantitative Finance 2020-12-24 Matthew O. Jackson , Agathe Pernoud

Understanding cascading processes on complex network topologies is paramount for modelling how diseases, information, fake news and other media spread. In this paper, we extend the multi-type branching process method developed in Keating et…

Physics and Society · Physics 2022-12-02 Leah A. Keating , James P. Gleeson , David J. P. O'Sullivan

We study the influence of clustering, more specifically triangles, on cascading failures in interdependent networks or systems, in which we model the dependence between comprising systems using a dependence graph. First, we propose a new…

Physics and Society · Physics 2018-02-13 Richard J. La

In this paper, we introduce an impact centrality measure to evaluate shock propagation on financial networks capturing a notion of contagion and systemic risk contributions, permitting comparisons of these risks over time. In addition, we…

Mathematical Finance · Quantitative Finance 2025-02-06 Agathe Sadeghi , Zachary Feinstein

Complex networks are ubiquitous: a cell, the human brain, a group of people and the Internet are all examples of interconnected many-body systems characterized by macroscopic properties that cannot be trivially deduced from those of their…

Evaluation of systemic risk in networks of financial institutions in general requires information of inter-institution financial exposures. In the framework of Debt Rank algorithm, we introduce an approximate method of systemic risk…

Risk Management · Quantitative Finance 2021-04-14 Sebastian M. Krause , Hrvoje Štefančić , Vinko Zlatić , Guido Caldarelli

We introduce a decision-making framework tailored for the management of systemic risk in networks. This framework is constructed upon three fundamental components: (1) a set of acceptable network configurations, (2) a set of interventions…

Risk Management · Quantitative Finance 2024-10-28 Gregor Svindland , Alexander Voß

In this paper, we study the crucial elements of complex networks, namely nodes, and edges and their properties such as their community structure, which play an important role in dictating the robustness of the network towards structural…

Social and Information Networks · Computer Science 2021-02-04 V. Parimi , A. Pal , S. Ruj , P. Kumaraguru , T. Chakraborty

Many man-made networks support each other to provide efficient services and resources to the customers, despite that this support produces a strong interdependency between the individual networks. Thus an initial failure of a fraction $1-p$…

Physics and Society · Physics 2014-02-11 L. D. Valdez , P. A. Macri , L. A. Braunstein

The North American power grid is one of the most complex technological networks, and its interconnectivity allows both for long-distance power transmission and for the propagation of disturbances. We model the power grid using its actual…

Other Condensed Matter · Physics 2009-11-10 Ryan Kinney , Paolo Crucitti , Reka Albert , Vito Latora

There is a rich history of models for the interaction of a biological contagion like influenza with the spread of related information such as an influenza vaccination campaign. Recent work on the spread of interacting contagions on networks…

Physics and Society · Physics 2020-09-02 Laurent Hébert-Dufresne , Dina Mistry , Benjamin M. Althouse

In this paper we estimate the propagation of liquidity shocks through interbank markets when the information about the underlying credit network is incomplete. We show that techniques such as Maximum Entropy currently used to reconstruct…

Risk Management · Quantitative Finance 2013-10-08 Iacopo Mastromatteo , Elia Zarinelli , Matteo Marsili

We introduce a new microscopic model of the outages in transmission power grids. This model accounts for the automatic response of the grid to load fluctuations that take place on the scale of minutes, when the optimum power flow…

Physics and Society · Physics 2015-03-17 René Pfitzner , Konstantin Turitsyn , Michael Chertkov

In our daily lives, we rely on the proper functioning of supply networks, from power grids to water transmission systems. A single failure in these critical infrastructures can lead to a complete collapse through a cascading failure…

Physics and Society · Physics 2021-06-03 Franz Kaiser , Vito Latora , Dirk Witthaut

In a cascading power transmission outage, component outages propagate non-locally, after one component outages, the next failure may be very distant, both topologically and geographically. As a result, simple models of topological contagion…

Physics and Society · Physics 2018-05-14 Paul D. H. Hines , Ian Dobson , Pooya Rezaei

Inspired by reliability issues in electric transmission networks, we use a probabilistic approach to study the occurrence of large failures in a stylized cascading failure model. In this model, lines have random capacities that initially…

Probability · Mathematics 2016-04-14 F. Sloothaak , S. C. Borst , A. P. Zwart

The dynamics of cascading activation, such as rapid changes in public opinion and the outbreak of disease epidemics, have a crucial dependence on the connectivity patterns among the agents. We study cascading dynamics in modular,…

Physics and Society · Physics 2022-01-20 Jordan Snyder , Weiran Cai , Raissa M. D'Souza

We consider a model of contagion in financial networks recently introduced in the literature, and we characterize the effect of a few features empirically observed in real networks on the stability of the system. Notably, we consider the…

General Finance · Quantitative Finance 2011-09-07 Fabio Caccioli , Thomas A. Catanach , J. Doyne Farmer
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