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We introduce a probabilistic framework that represents stylized banking networks with the aim of predicting the size of contagion events. Most previous work on random financial networks assumes independent connections between banks, whereas…

Physics and Society · Physics 2017-04-12 Thomas R. Hurd , James P. Gleeson , Sergey Melnik

We model a network economy with three sectors: downstream firms, upstream firms, and banks. Agents are linked by productive and credit relationships so that the behavior of one agent influences the behavior of the others through network…

General Finance · Quantitative Finance 2010-06-18 Domenico Delli Gatti , Mauro Gallegati , Bruce Greenwald , Alberto Russo , Joseph E. Stiglitz

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

Integrated cyber-physical systems (CPSs), such as the smart grid, are increasingly becoming the underpinning technology for major industries. A major concern regarding such systems are the seemingly unexpected large-scale failures, which…

Physics and Society · Physics 2018-07-27 Yingrui Zhang , Osman Yagan

The stability of a complex financial system may be assessed by measuring risk contagion between various financial institutions with relatively high exposure. We consider a financial network model using a bipartite graph of financial…

Risk Management · Quantitative Finance 2025-05-23 Bikramjit Das , Vicky Fasen-Hartmann

Social media for news consumption is becoming increasingly popular due to its easy access, fast dissemination, and low cost. However, social media also enable the wide propagation of "fake news", i.e., news with intentionally false…

Social and Information Networks · Computer Science 2018-04-30 Kai Shu , H. Russell Bernard , Huan Liu

We test the hypothesis that interconnections across financial institutions can be explained by a diversification motive. This idea stems from the empirical evidence of the existence of long-term exposures that cannot be explained by a…

Risk Management · Quantitative Finance 2015-02-24 Jean-Cyprien Héam , Erwan Koch

The recent financial crisis has stressed the need to understand financial systems as networks of interdependent countries, where cross-border financial linkages play the fundamental role. It has also been emphasized that the relevance of…

Statistical Finance · Quantitative Finance 2015-06-03 Alessandro Spelta , Tanya Araújo

Aggregate and systemic risk in complex systems are emergent phenomena depending on two properties: the idiosyncratic risks of the elements and the topology of the network of interactions among them. While a significant attention has been…

Social and Information Networks · Computer Science 2018-09-25 Elisa Letizia , Fabrizio Lillo

We study proliferation of an action in binary action network coordination games that are generalized to include global effects. This captures important aspects of proliferation of a particular action or narrative in online social networks,…

Theoretical Economics · Economics 2023-08-02 John Higgins , Tarun Sabarwal

As a social media, online social networks play a vital role in the social information diffusion. However, due to its unique complexity, the mechanism of the diffusion in online social networks is different from the ones in other types of…

Social and Information Networks · Computer Science 2015-05-18 Jichang Zhao , Junjie Wu , Ke Xu

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,…

Social and Information Networks · Computer Science 2013-08-14 Kristina Lerman , Rumi Ghosh , Tawan Surachawala

The paper aims to present a new apparatus for managing of the information security of the digital economy with using of social networks. A general problem for optimization of the information security management for participants in the…

Physics and Society · Physics 2021-01-12 Anatolii A. Shyian

The level of systemic risk in economic and financial systems is strongly determined by the structure of the underlying networks of interdependent entities that can propagate shocks and stresses. Since changes in network structure imply…

This paper studies systemic-risk connectedness in the European insurance sector at three levels of granularity: across major segments of financial markets, across insurance subsectors, and across individual insurance companies. Using a…

Computational Finance · Quantitative Finance 2026-05-12 Giovanni Bonaccolto , Nicola Borri , Andrea Consiglio , Giorgio Di Giorgio

We study the international interbank market through a geometrical and a topological analysis of empirical data. The geometrical analysis of the time series of cross-country liabilities shows that the systematic information of the interbank…

Computational Finance · Quantitative Finance 2012-05-28 Alessandro Spelta , Tanya Araújo

Since the publication of 'Complex Contagions and the Weakness of Long Ties' in 2007, complex contagions have been studied across an enormous variety of social domains. In reviewing this decade of research, we discuss recent advancements in…

Social and Information Networks · Computer Science 2017-10-23 Douglas Guilbeault , Joshua Becker , Damon Centola

In this paper we study how the network of agents adopting a particular technology relates to the structure of the underlying network over which the technology adoption spreads. We develop a model and show that the network of agents adopting…

Social and Information Networks · Computer Science 2013-04-09 Grant Schoenebeck

This systemic risk paper introduces inhomogeneous random financial networks (IRFNs). Such models are intended to describe parts, or the entirety, of a highly heterogeneous network of banks and their interconnections, in the global financial…

General Finance · Quantitative Finance 2019-09-23 T. R. Hurd

In this article we propose a novel measure of systemic risk in the context of financial networks. To this aim, we provide a definition of systemic risk which is based on the structure, developed at different levels, of clustered neighbours…

Physics and Society · Physics 2020-07-30 Roy Cerqueti , Gian Paolo Clemente , Rosanna Grassi