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Related papers: Pathways towards instability in financial networks

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Financial networks are dynamic. To assess their systemic importance to the world-wide economic network and avert losses we need models that take the time variations of the links and nodes into account. Using the methodology of classical…

Risk Management · Quantitative Finance 2014-12-10 Nima Dehmamy , Sergey V. Buldyrev , Shlomo Havlin , H. Eugene Stanley , Irena Vodenska

In this chapter the complex systems are discussed in the context of economic and business policy and decision making. It will be showed and motivated that social systems are typically chaotic, non-linear and/or non-equilibrium and therefore…

General Finance · Quantitative Finance 2015-03-20 Robert Kitt

Financial crises are known as crashes that result in a sudden loss of value of financial assets in large part and they continue to occur from time to time surprisingly. In order to discover features of the financial network, the pairwise…

Statistical Finance · Quantitative Finance 2023-01-11 MohammadReza Zahedian , Mahsa Bagherikalhor , Andrey Trufanov , G. Reza Jafari

One of the most defining features of the global financial network is its inherent complex and intertwined structure. From the perspective of systemic risk it is important to understand the influence of this network structure on default…

Risk Management · Quantitative Finance 2019-12-11 Nils Detering , Thilo Meyer-Brandis , Konstantinos Panagiotou , Daniel Ritter

Why are human societies unstable? Theories based on the observation of recurring patterns in historical data indicate that economic inequality, as well as social factors are key drivers. So far, models of this phenomenon are more…

Physics and Society · Physics 2025-06-24 Alexander Jochim , Stefan Bornholdt

Genetic regulatory networks are defined by their topology and by a multitude of continuously adjustable parameters. Here we present a class of simple models within which the relative importance of topology vs. interaction strengths becomes…

Molecular Networks · Quantitative Biology 2013-08-02 Mikhail Tikhonov , William Bialek

Economic integration, globalization and financial crises represent examples of processes whose understanding requires the analysis of the underlying network structure. Of particular interest is establishing whether a real economic network…

General Finance · Quantitative Finance 2016-01-06 Tiziano Squartini , Diego Garlaschelli

Multi-stability is a widely observed phenomenon in real complex networked systems, such as technological infrastructures, ecological systems, gene regulation, transportation and more. When a system functions normally but there exists also a…

Physics and Society · Physics 2022-05-27 Hillel Sanhedrai , Shlomo Havlin

We study a general set of models of social network evolution and dynamics. The models consist of both a dynamics on the network and evolution of the network. Links are formed preferentially between 'similar' nodes, where the similarity is…

Physics and Society · Physics 2009-11-11 George C. M. A. Ehrhardt , Matteo Marsili , Fernando Vega-Redondo

Network structure strongly constrains the range of dynamic behaviors available to a complex system. These system dynamics can be classified based on their response to perturbations over time into two distinct regimes, ordered or chaotic,…

Disordered Systems and Neural Networks · Physics 2009-11-13 Matti Nykter , Nathan D. Price , Antti Larjo , Tommi Aho , Stuart A. Kauffman , Olli Yli-Harja , Ilya Shmulevich

In this paper we show similarities between turbulence and financial systems. Motivated by similarities between the two systems, we construct a multiscale model for hierarchical financial structures that exhibits a constant cascade of wealth…

General Finance · Quantitative Finance 2019-11-25 Mahendra K. Verma

Although it is unambiguously agreed that structure plays a fundamental role in shaping the dynamics of complex systems, this intricate relationship still remains unclear. We investigate a general computational transformation by which we can…

Disordered Systems and Neural Networks · Physics 2015-05-13 Jie Zhang , Changsong Zhou , Xiaoke Xu , Michael Small

We study the phenomenon of entrainment in processor sharing networks, whereby, while individual network resources have sufficient capacity to met demand, the requirement for simultaneous availability of resources means that a network may…

Probability · Mathematics 2007-08-01 Jennie Hansen , Cian Reynolds , Stan Zachary

Systemic risk in banking systems remains a crucial issue that it has not been completely understood. In our toy model, banks are exposed to two sources of risks, namely, market risk from their investments in assets external to the banking…

Risk Management · Quantitative Finance 2017-02-24 Aki-Hiro Sato , Paolo Tasca , Takashi Isogai

The global financial system has become highly connected and complex. Has been proven in practice that existing models, measures and reports of financial risk fail to capture some important systemic dimensions. Only lately, advisory boards…

Risk Management · Quantitative Finance 2011-12-07 Michalis Vafopoulos

Symmetries are ubiquitous in network systems and have profound impacts on the observable dynamics. At the most fundamental level, many synchronization patterns are induced by underlying network symmetry, and a high degree of symmetry is…

Adaptation and Self-Organizing Systems · Physics 2019-02-18 Joseph D. Hart , Yuanzhao Zhang , Rajarshi Roy , Adilson E. Motter

Supply chains are the backbone of the global economy. Disruptions to them can be costly. Centrally managed supply chains invest in ensuring their resilience. Decentralized supply chains, however, must rely upon the self-interest of their…

Computer Science and Game Theory · Computer Science 2020-01-15 Victor Amelkin , Rakesh Vohra

We consider the dynamics of a reaction-diffusion system on a multigraph. The species share the same set of nodes but can access different links to explore the embedding spatial support. By acting on the topology of the networks we can…

Statistical Mechanics · Physics 2016-12-21 Malbor Asllani , Timoteo Carletti , Duccio Fanelli

Links in many real-world networks activate and deactivate in correspondence to the sporadic interactions between the elements of the system. The activation patterns may be irregular or bursty and play an important role on the dynamics of…

Physics and Society · Physics 2017-02-03 Oriol Artime , Jose J. Ramasco , Maxi San Miguel

The connection between network topology and stability remains unclear. General approaches that clarify this relationship and allow for more efficient stability analysis would be desirable. Inspired by chemical reaction networks, I…

Chaotic Dynamics · Physics 2013-09-27 Ali Kinkhabwala