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A key element to understand complex systems is the relationship between the spatial scale of investigation and the structure of the interrelation among its elements. When it comes to economic systems, it is now well-known that the…

Physics and Society · Physics 2022-02-07 Dario Laudati , Manuel S. Mariani , Luciano Pietronero , Andrea Zaccaria

Recent developments in the global liberalization of equity and currency markets, coupled to advances in trading technologies, are making markets increasingly interdependent. This increased fluidity raises questions about the stability of…

adap-org · Physics 2019-08-15 Tad Hogg , Bernardo A. Huberman , Michael Youssefmir

Tens of thousands of parent companies control millions of subsidiaries through long chains of intermediary entities in global corporate networks. Conversely, tens of millions of entities are directly held by sole owners. We propose an…

Physics and Society · Physics 2021-09-17 Kirill Polovnikov , Nikita Pospelov , Dmitriy Skougarevskiy

In this paper, we propose a dynamical model to capture cascading failures among interconnected organizations in the global financial system. Failures can take the form of bankruptcies, defaults, and other insolvencies. The network that…

Optimization and Control · Mathematics 2023-11-13 Leonardo Stella , Dario Bauso , Franco Blanchini , Patrizio Colaneri

We analyze the structure of the market for foundation models, i.e., large AI models such as those that power ChatGPT and that are adaptable to downstream uses, and we examine the implications for competition policy and regulation. We…

Artificial Intelligence · Computer Science 2023-11-06 Jai Vipra , Anton Korinek

In this paper, we investigate the statistical features of the weighted international-trade network. By finding the maximum weight spanning trees for this network we make the extraction of the truly relevant connections forming the network's…

Physics and Society · Physics 2023-07-19 Patryk Skowron , Mariusz Karpiarz , Agata Fronczak , Piotr Fronczak

Despite the significant advances in identifying the driver nodes and energy requiring in network control, a framework that incorporates more complicated dynamics remains challenging. Here, we consider the conformity behavior into network…

Physics and Society · Physics 2022-01-26 Zu-Yu Qian , Cheng Yuan , Jie Zhou , Shi-Ming Chen , Sen Nie

In a market system, regulations are designed to prevent or rectify market failures that inhibit fair exchange, such as monopoly or transactions with hidden costs. Because regulations reduce profits to those possessing unfair advantage,…

General Finance · Quantitative Finance 2013-10-02 Dominic K. Albino , Anzi Hu , Yaneer Bar-Yam

The controllability of a network is a theoretical problem of relevance in a variety of contexts ranging from financial markets to the brain. Until now, network controllability has been characterized only on isolated networks, while the vast…

Physics and Society · Physics 2016-02-17 Giulia Menichetti , Luca Dall'Asta , Ginestra Bianconi

Financial networks help firms manage risk but also enable financial shocks to spread. Despite their importance, existing models of financial networks have several limitations. Prior works often consider a static network with a simple…

Optimization and Control · Mathematics 2024-02-06 Akhil Jalan , Deepayan Chakrabarti , Purnamrita Sarkar

Predicting how the brain can be driven to specific states by means of internal or external control requires a fundamental understanding of the relationship between neural connectivity and activity. Network control theory is a powerful tool…

Neurons and Cognition · Quantitative Biology 2019-08-12 Teresa M. Karrer , Jason Z. Kim , Jennifer Stiso , Ari E. Kahn , Fabio Pasqualetti , Ute Habel , Danielle S. Bassett

Futures trading is the core of futures business, and it is considered as one of the typical complex systems. To investigate the complexity of futures trading, we employ the analytical method of complex networks. First, we use real trading…

Statistical Finance · Quantitative Finance 2015-05-18 Junjie Wang , Shuigeng Zhou , Jihong Guan

Internet finance is a new financial model that applies Internet technology to payment, capital borrowing and lending and transaction processing. In order to study the internal risks, this paper uses the Internet financial risk elements as…

Econometrics · Economics 2020-01-08 Runjie Xu , Chuanmin Mi , Rafal Mierzwiak , Runyu Meng

The global financial crisis in 2007-2009 demonstrated that systemic risk can spread all over the world through a complex web of financial linkages, yet we still lack fundamental knowledge about the evolution of the financial web. In…

Statistical Finance · Quantitative Finance 2018-06-11 Teruyoshi Kobayashi , Taro Takaguchi

Structural controllability has been proposed as an analytical framework for making predictions regarding the control of complex networks across myriad disciplines in the physical and life sciences (Liu et al., Nature:473(7346):167-173,…

Physics and Society · Physics 2015-05-28 Noah J. Cowan , Erick J. Chastain , Daril A. Vilhena , James S. Freudenberg , Carl T. Bergstrom

The field of optimal control typically requires the assumption of perfect knowledge of the system one desires to control, which is an unrealistic assumption for biological systems, or networks, typically affected by high levels of…

Optimization and Control · Mathematics 2021-04-28 Isaac Klickstein , Francesco Sorrentino

The structure of real-world social networks in large part determines the evolution of social phenomena, including opinion formation, diffusion of information and influence, and the spread of disease. Globally, network structure is…

Social and Information Networks · Computer Science 2015-01-20 Sidharth Gupta , Xiaoran Yan , Kristina Lerman

The modeling and control of networks over finite lattices are studied via the algebraic state space approach. Using the semi-tensor product of matrices, we obtain the algebraic state space representation of the dynamics of (control)…

Optimization and Control · Mathematics 2024-12-17 Zhengping Ji , Daizhan Cheng

Our ability to control complex systems is a fundamental challenge of contemporary science. Recently introduced tools to identify the driver nodes, nodes through which we can achieve full control, predict the existence of multiple control…

The lack of studying the complex organization of directed network usually limits to the understanding of underlying relationship between network structures and functions. Structural controllability and structural predictability, two…

Physics and Society · Physics 2022-03-31 Fei Jing , Chuang Liu , Jian-Liang Wu , Zi-Ke Zhang
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