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Cascading chains of events are a salient feature of many real-world social, biological, and financial networks. In social networks, social reciprocity accounts for retaliations in gang interactions, proxy wars in nation-state conflicts, or…

Machine Learning · Statistics 2016-07-05 Eric C. Hall , Rebecca M. Willett

Financial contagion from liquidity shocks has being recently ascribed as a prominent driver of systemic risk in interbank lending markets. Building on standard compartment models used in epidemics, in this work we develop an EDB…

Risk Management · Quantitative Finance 2018-05-23 Giuseppe Brandi , Riccardo Di Clemente , Giulio Cimini

Social networks have emerged as a critical factor in information dissemination, search, marketing, expertise and influence discovery, and potentially an important tool for mobilizing people. Social media has made social networks ubiquitous,…

Computers and Society · Computer Science 2010-03-16 Kristina Lerman , Rumi Ghosh

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

Complex networks are frequently employed to model physical or virtual complex systems. When certain entities exist across multiple systems simultaneously, unveiling their corresponding relationships across the networks becomes crucial. This…

Physics and Society · Physics 2025-04-16 Rui Tang , Ziyun Yong , Shuyu Jiang , Xingshu Chen , Yaofang Liu , Yi-Cheng Zhang , Gui-Quan Sun , Wei Wang

Internet is known to display a highly heterogeneous structure and complex fluctuations in its traffic dynamics. Congestion seems to be an inevitable result of user's behavior coupled to the network dynamics and it effects should be…

Disordered Systems and Neural Networks · Physics 2009-11-10 Sergi Valverde , Ricard V. Sole

A characteristic property of networks is their ability to propagate influences, such as infectious diseases, behavioral changes, and failures. An especially important class of such contagious dynamics is that of cascading processes. These…

Physics and Society · Physics 2017-01-26 Adilson E. Motter , Yang Yang

Small and Medium-sized Enterprises (SMEs) are known to play a vital role in economic growth, employment, and innovation. However, they tend to face significant challenges in accessing credit due to limited financial histories, collateral…

General Finance · Quantitative Finance 2025-10-13 Sahab Zandi , Kamesh Korangi , Juan C. Moreno-Paredes , María Óskarsdóttir , Christophe Mues , Cristián Bravo

In this paper we offer a novel type of network model which can capture the precise structure of a financial market based, for example, on empirical findings. With the attached stochastic framework it is further possible to study how an…

Mathematical Finance · Quantitative Finance 2015-07-09 Alexander von Felbert

Cyber Resilience is an important property of complex systems and is important consideration in developing specific IoT applications. This work aims at introducing a novel approach to assess IoT resilience adopting the risk perception in…

Networking and Internet Architecture · Computer Science 2021-09-24 Emanuele Bellini , Franco Bagnoli , Alexander A. Ganin , Igor Linkov

Global trade of material goods involves the potential to create pathways for the spread of infectious pathogens. One trade sector in which this synergy is clearly critical is that of wildlife trade networks. This highly complex system…

Theoretical Economics · Economics 2025-04-10 John S. McAlister , Jesse L. Brunner , Danielle J. Galvin , Nina H. Fefferman

This paper leverages linear systems theory to propose a principled measure of complexity for network systems. We focus on a network of first-order scalar linear systems interconnected through a directed graph. By locally filtering out the…

Systems and Control · Electrical Eng. & Systems 2025-07-10 Giacomo Baggio , Marco Fabris

Since 2008, the network analysis of financial systems is one of the most important subjects in economics. In this paper, we have used the complexity approach and Random Matrix Theory (RMT) for analyzing the global banking network. By…

Statistical Finance · Quantitative Finance 2020-07-30 Ali Namaki , Jamshid Ardalankia , Reza Raei , Leila Hedayatifar , Ali Hosseiny , Emmanuel Haven , G. Reza Jafari

We study the role of contingent convertible bonds (CoCos) in a complex network of interconnected banks. By studying the system's phase transitions, we reveal that the structure of the interbank network is of fundamental importance for the…

General Finance · Quantitative Finance 2023-12-22 Giovanni Calice , Carlo Sala , Daniele Tantari

We propose here a multiplex network approach to investigate simultaneously different types of dependency in complex data sets. In particular, we consider multiplex networks made of four layers corresponding respectively to linear,…

Physics and Society · Physics 2016-06-16 Nicoló Musmeci , Vincenzo Nicosia , Tomaso Aste , Tiziana Di Matteo , Vito Latora

Decentralized finance introduces new business models and use cases as part of digital finance. Restaking has recently emerged as a transformative mechanism in DeFi, promising extra yields but introducing complex and interconnected risks.…

General Finance · Quantitative Finance 2026-04-17 Hasret Ozan Sevim , Christof Ferreira Torres

Cyber networks are fundamental to many organization's infrastructure, and the size of cyber networks is increasing rapidly. Risk measurement of the entities/endpoints that make up the network via available knowledge about possible threats…

Systems and Control · Electrical Eng. & Systems 2025-01-29 Arda Bayer , David Maluf , Behnaam Aazhang

This article provides a taxonomy of current and past network modeling efforts. In all these efforts over the last few years we see a trend towards not only describing the network, but connected devices as well. This is especially current…

Networking and Internet Architecture · Computer Science 2014-03-06 Jeroen van der Ham , Mattijs Ghijsen , Paola Grosso , Cees de Laat

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…

Physics and Society · Physics 2025-12-18 Leyang Xue , Kai-Cheng Yang , Peng-Bi Cui , Zengru Di

This paper elaborates about the potential risk of systemic instabilities in future networks and proposes a methodology to mitigate it. The starting concept is modeling the network as a complex environment (e.g. ecosystem) of resources and…

Networking and Internet Architecture · Computer Science 2012-04-24 Antonio Manzalini
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