Related papers: Contagious Synchronization and Endogenous Network …
A minimal stochastic dynamical model of the interbank network is introduced, with linear interactions mediated by an integral of recent variations. Defining stress as the variance over the banks' states, the interaction correction to the…
We contribute to the understanding of how systemic risk arises in a network of credit-interlinked agents. Motivated by empirical studies we formulate a network model which, despite its simplicity, depicts the nature of interbank markets…
Systemic risk arises as a multi-layer network phenomenon. Layers represent direct financial exposures of various types, including interbank liabilities, derivative- or foreign exchange exposures. Another network layer of systemic risk…
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…
The ability of groups to make accurate collective decisions depends on a complex interplay of various factors, such as prior information, biases, social influence, and the structure of the interaction network. Here, we investigate a spin…
Behavioral adoptions are influenced by peers in different ways. While some individuals may change after a single incoming influence, others need multiple cumulated attempts. These two mechanism, known as the simple and the complex…
The vast majority of strategies aimed at controlling contagion processes on networks considers the connectivity pattern of the system as either quenched or annealed. However, in the real world many networks are highly dynamical and evolve…
Human behavior often exhibit a scheme in which individuals adopt indifferent, neutral, or radical positions on a given topic. The mechanisms leading to community formation are strongly related with social pressure and the topology of the…
This paper develops a framework for identification, estimation, and inference on the causal mechanisms driving endogenous social network formation. Identification is challenging because of unobserved confounders and reverse causality;…
The spread of ideas, behaviors, and technologies generally depends on feedback mechanisms operating across multiple scales. Previous studies have extensively examined pairwise transmission and local reinforcement. However, the role of…
Faced with uncertainty in decision making, individuals often turn to their social networks to inform their decisions. In consequence, these networks become central to how new products and behaviors spread. A key structural feature of…
We study a model of information aggregation and social learning recently proposed by Jadbabaie, Sandroni, and Tahbaz-Salehi, in which individual agents try to learn a correct state of the world by iteratively updating their beliefs using…
This chapter reviews key contributions of complexity science to the study of systemic risk in financial systems. The focus is on network models of financial contagion, where I explore various mechanisms of shock propagation, such as…
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…
Understanding cascading failures or epidemics in networks is crucial for developing effective defensive mechanisms for many critical systems and infrastructures (e.g. biological, social and cyber networks). Most of the existing works treat…
In spite of the growing theoretical literature on cascades of failures in interbank lending networks, empirical results seem to suggest that networks of direct exposures are not the major channel of financial contagion. In this paper we…
An epidemic spreading in a network calls for a decision on the part of the network members: They should decide whether to protect themselves or not. Their decision depends on the trade-off between their perceived risk of being infected and…
In recent years networks have gained unprecedented attention in studying a broad range of topics, among them in complex systems research. In particular, multi-agent systems have seen an increased recognition of the importance of the…
Time-varying community structures widely exist in various real-world networks. However, the spreading dynamics on this kind of network has not been fully studied. To this end, we systematically study the effects of time-varying community…
Social network research has begun to take advantage of fine-grained communications regarding coordination, decision-making, and knowledge sharing. These studies, however, have not generally analyzed how external events are associated with a…