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Understanding the process by which a contagion disseminates throughout a network is of great importance in many real world applications. The required sophistication of the inference approach depends on the type of information we want to…

Social and Information Networks · Computer Science 2017-05-26 Shohreh Shaghaghian , Mark Coates

Models of threshold driven contagion explain the cascading spread of information, behavior, systemic risk, and epidemics on social, financial and biological networks. At odds with empirical observation, these models predict that…

Physics and Society · Physics 2019-10-23 Samuel Unicomb , Gerardo Iñiguez , János Kertész , Márton Karsai

Motivated by the analysis of social networks, we study a model of random networks that has both a given degree distribution and a tunable clustering coefficient. We consider two types of growth processes on these graphs: diffusion and…

Probability · Mathematics 2012-02-23 Emilie Coupechoux , Marc Lelarge

We develop a novel stress-test framework to monitor systemic risk in financial systems. The modular structure of the framework allows to accommodate for a variety of shock scenarios, methods to estimate interbank exposures and mechanisms of…

Risk Management · Quantitative Finance 2016-02-23 Stefano Battiston , Marco D'Errico , Stefano Gurciullo , Guido Caldarelli

We study how the phenomenon of contagion can take place in the network of the world's stock exchanges due to the behavioral trait "blindeness to small changes". On large scale individual, the delay in the collective response may…

General Finance · Quantitative Finance 2016-02-25 Lucia Bellenzier , Jørgen Vitting Andersen , Giulia Rotundo

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 introduce a class of generative network models that insert edges by connecting the starting and terminal vertices of a random walk on the network graph. Within the taxonomy of statistical network models, this class is distinguished by…

Methodology · Statistics 2018-07-11 Benjamin Bloem-Reddy , Peter Orbanz

We live in a modern world supported by large, complex networks. Examples range from financial markets to communication and transportation systems. In many realistic situations the flow of physical quantities in the network, as characterized…

Disordered Systems and Neural Networks · Physics 2009-11-10 Adilson E. Motter , Ying-Cheng Lai

Across the sciences, the statistical analysis of networks is central to the production of knowledge on relational phenomena. Because of their ability to model the structural generation of networks, exponential random graph models are a…

Data Analysis, Statistics and Probability · Physics 2015-05-27 Bruce A. Desmarais , Skyler J. Cranmer

Networks facilitate the spread of cascades, allowing a local perturbation to percolate via interactions between nodes and their neighbors. We investigate how network structure affects the dynamics of a spreading cascade. By accounting for…

Physics and Society · Physics 2018-09-12 Xin-Zeng Wu , Peter G. Fennell , Allon G. Percus , Kristina Lerman

We discuss the systemic risk implied by the interbank exposures reconstructed with the maximum entropy method. The maximum entropy method severely underestimates the risk of interbank contagion by assuming a fully connected network, while…

Risk Management · Quantitative Finance 2017-03-16 M. Andrecut

Information and individual activities often spread globally through the network of social ties. While social contagion phenomena have been extensively studied within the framework of threshold models, it is common to make an assumption that…

Physics and Society · Physics 2023-06-07 Teruyoshi Kobayashi

Complex non-linear interactions between banks and assets we model by two time-dependent Erd\H{o}s Renyi network models where each node, representing bank, can invest either to a single asset (model I) or multiple assets (model II). We use…

Risk Management · Quantitative Finance 2015-06-19 B. Podobnik , D. Horvatic , M. Bertella , L. Feng , X. Huang , B. Li

Large but rare cascades triggered by small initial shocks are present in most of the infrastructure networks. Here we present a simple model for cascading failures based on the dynamical redistribution of the flow on the network. We show…

Other Condensed Matter · Physics 2009-11-10 Paolo Crucitti , Vito Latora , Massimo Marchiori

We introduce a novel framework for computing optimal randomized security policies in networked domains which extends previous approaches in several ways. First, we extend previous linear programming techniques for Stackelberg security games…

Computer Science and Game Theory · Computer Science 2012-10-19 Joshua Letchford , Yevgeniy Vorobeychik

We study the impact of contagion in a network of firms facing credit risk. We describe an intensity based model where the homogeneity assumption is broken by introducing a random environment that makes it possible to take into account the…

Risk Management · Quantitative Finance 2008-12-02 Paolo Dai Pra , Marco Tolotti

We investigate cascades in networks consisting of strategic agents with interdependent security. We assume that the strategic agents have choices between i) investing in protecting themselves, ii) purchasing insurance to transfer (some)…

Social and Information Networks · Computer Science 2015-02-27 Richard J. La

We present the mathematical analysis of generalized complex contagions in clustered multiplex networks for susceptible-infected-recovered (SIR)-like dynamics. The model is intended to understand diffusion of influence, or any other…

Physics and Society · Physics 2017-02-01 Yong Zhuang , Alex Arenas , Osman Yağan

Systemic risks of default contagion in the Russian interbank market are investigated. The analysis is based on considering the bow-tie structure of the weighted oriented graph describing the structure of the interbank loans. A probabilistic…

Risk Management · Quantitative Finance 2016-01-05 A. V. Leonidov , E. L. Rumyantsev

The increasing integration of world economies, which organize in complex multilayer networks of interactions, is one of the critical factors for the global propagation of economic crises. We adopt the network science approach to quantify…

Physics and Society · Physics 2019-01-09 Michele Starnini , Marián Boguñá , M. Ángeles Serrano
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