Related papers: Dynamic Interventions for Networked Contagions
Complex adaptive networks exhibit remarkable resilience, driven by the dynamic interplay of structure (interactions) and function (state). While static-network analyses offer valuable insights, understanding how structure and function…
The latest financial crisis has painfully revealed the dangers arising from a globally interconnected financial system. Conventional approaches based on the notion of the existence of equilibrium and those which rely on statistical…
A debt swap is an elementary edge swap in a directed, weighted graph, where two edges with the same weight swap their targets. Debt swaps are a natural and appealing operation in financial networks, in which nodes are banks and edges…
Social influence is largely recognized as a key factor in opinion formation processes. Recently, the role of external forces in inducing opinion displacement and polarization in social networks has attracted significant attention. This is…
We study the formation of an optimal interbank network in a model where banks control both their supply of liquidity, through cash reserves, and their exposures to other banks' risky projects. The value of each bank's project may suddenly…
Financial networks are characterized by complex structures of mutual obligations. These obligations are fulfilled entirely or in part (when defaults occur) via a mechanism called clearing, which determines a set of payments that settle the…
Distribution networks are increasingly exposed to threats such as extreme weather, aging infrastructure, and cyber risks--resulting in more frequent contingencies and outages, a trend likely to persist. Microgrids, particularly dynamic…
This paper introduces a formulation of the optimal network compression problem for financial systems. This general formulation is presented for different levels of network compression or rerouting allowed from the initial interbank network.…
Real-world network systems are inherently dynamic, with network topologies undergoing continuous changes over time. Previous works often focus on static networks or rely on complete prior knowledge of evolving topologies, whereas real-world…
Cyber risk has become a critical financial threat in today's interconnected digital economy. This paper introduces a cyber-risk management framework for networked digital systems that combines the strategic behavior of players with…
This paper develops a mathematical framework to study signal networks, in which nodes can be active or inactive, and their activation or deactivation is driven by external signals and the states of the nodes to which they are connected via…
A long line of work in social psychology has studied variations in people's susceptibility to persuasion -- the extent to which they are willing to modify their opinions on a topic. This body of literature suggests an interesting…
We consider discrete-time dynamics, for cascading failure in DC networks, whose map is composition of failure rule with control actions. Supply-demand at the nodes is monotonically non-increasing under admissible control. Under the failure…
Modern financial networks are highly connected and result in complex interdependencies of the involved institutions. In the prominent Eisenberg-Noe model, a fundamental aspect is clearing -- to determine the amount of assets available to…
In this paper, we tackle a challenging problem inherent in a series of applications: tracking the influential nodes in dynamic networks. Specifically, we model a dynamic network as a stream of edge weight updates. This general model…
We consider a portfolio optimization problem in a defaultable market with finitely-many economical regimes, where the investor can dynamically allocate her wealth among a defaultable bond, a stock, and a money market account. The market…
We study the problem of robust influence maximization in dynamic diffusion networks. In line with recent works, we consider the scenario where the network can undergo insertion and removal of nodes and edges, in discrete time steps, and the…
Parallel server systems in transportation, manufacturing, and computing heavily rely on dynamic routing using connected cyber components for computation and communication. Yet, these components remain vulnerable to random malfunctions and…
Social networks have well documented effects at the individual and aggregate level. Consequently it is often useful to understand how an attempt to influence a network will change its structure and consequently achieve other goals. We…
We introduce a dynamic optimization framework to analyze optimal portfolio allocations within an information driven contagious distress model. The investor allocates his wealth across several stocks whose growth rates and distress…