Related papers: Supply Network Formation and Fragility
Various social, financial, biological and technological systems can be modeled by interdependent networks. It has been assumed that in order to remain functional, nodes in one network must receive the support from nodes belonging to…
The structure of the supply chain network has important implications for modelling economic systems, from growth trajectories to responses to shocks or natural disasters. However, reconstructing firm-to-firm networks from available…
Economic models with input-output networks assume that firm or sector (unit) growth is driven by a weighted sum of trade partners' growth and an independently-drawn idiosyncratic shock. I show that the idiosyncratic risk assumption in a…
This paper explores a variety of strategies for understanding the formation, structure, efficiency and vulnerability of water distribution networks. Water supply systems are studied as spatially organized networks for which the practical…
Supply chains need to balance competing objectives; in addition to efficiency they need to be resilient to adversarial and environmental interference, and robust to uncertainties in long term demand. Significant research has been conducted…
We propose a generic system model for a special category of interdependent networks, demand-supply networks, in which the demand and the supply nodes are associated with heterogeneous loads and resources, respectively. Our model sheds a…
Will a large economy be stable? Building on Robert May's original argument for large ecosystems, we conjecture that evolutionary and behavioural forces conspire to drive the economy towards marginal stability. We study networks of firms in…
We introduce a parsimonious multi-sector model of international production and use it to study the impact of a disruption in the production of some goods propagates to other goods and consumers, and how that impact depends on the goods'…
Link failures repeatedly induce large-scale outages in power grids and other supply networks. Yet, it is still not well understood, which links are particularly prone to inducing such outages. Here we analyze how the nature and location of…
Supply chain disruptions constitute an often underestimated risk for financial stability. As in financial networks, systemic risks in production networks arises when the local failure of one firm impacts the production of others and might…
Following the financial crisis of 2007-2008, a deep analogy between the origins of instability in financial systems and complex ecosystems has been pointed out: in both cases, topological features of network structures influence how easily…
The right performance of a supply chain depends on the pattern of relationships among firms. Although there is not a general consensus among researchers yet, many studies point that scale-free topologies, where few highly related firms are…
We study how idiosyncratic firm-level shocks generate aggregate volatility and tail risk when they propagate through a production network under overlapping adjustment: new productivity draws arrive before the economy reaches the static…
Much of the analysis of economic growth has focused on the study of aggregate output. Here, we deviate from this tradition and look instead at the structure of output embodied in the network connecting countries to the products that they…
For centuries, national economies created wealth by engaging in international trade and production. The resulting international supply networks not only increase wealth for countries, but also create systemic risk: economic shocks,…
A key quality of any kind of system is its ability to deliver its respective service correctly. Often the unavailability of commercial systems may lead to lost revenue, which are minor compared to what may be at stake when critical…
The structure and design of optimal supply networks is an important topic in complex networks research. A fundamental trait of natural and man-made networks is the emergence of loops and the trade-off governing their formation: adding…
Distress propagation occurs in connected networks, its rate and extent being dependent on network topology. To study this, we choose economic production networks as a paradigm. An economic network can be examined at many levels: linkages…
We propose and analyze a graph model to study the connectivity of interdependent networks. Two interdependent networks of arbitrary topologies are modeled as two graphs, where every node in one graph is supported by supply nodes in the…
Recent events such as the Heparin tragedy, in which patients lost their lives due to tainted pharmaceuticals, highlight the necessity for supply chain designers and planners to consider the risk of even low probability disruptions in supply…