Related papers: Critical Distribution System
Demand forecasting plays an important role in many inventory control problems. To mitigate the potential harms of model misspecification, various forms of distributionally robust optimization have been applied. Although many of these…
In this article we consider the possibility of controlling the dynamics of nonlinear discrete systems. A new method of control is by mixing states of the system (or the functions of these states) calculated on previous steps. This approach…
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,…
Extreme weather events have a significant impact on the aging and outdated power distribution infrastructures. These high-impact low-probability (HILP) events often result in extended outages and loss of critical services, thus, severely…
This paper investigates the endogenous formation of supply chains and its consequences for disruption propagation. In production networks where upstream risk is highly correlated and supplier relationships are not observable, the marginal…
We argue that the word ``critical'' in the title is not purely literary. Based on our and other previous work on nonlinear complex dynamical systems, we summarize present evidence, on the Oct. 1929, Oct. 1987, Oct. 1987 Hong-Kong, Aug. 1998…
Predicting panic is of critical importance in many areas of human and animal behavior, notably in the context of economics. The recent financial crisis is a case in point. Panic may be due to a specific external threat, or self-generated…
In this paper, we develop a theory of market crashes resulting from a deleveraging shock. We consider two representative investors in a market holding different opinions about the public available information. The deleveraging shock forces…
The phase behaviour of a weakly polydisperse system, such as a colloid with a small spread of particle sizes, can be related perturbatively to that of its monodisperse counterpart. I show how this approach can be generalized to remain…
The paper analyzes the socio-economic impacts of dropshipping - a new form of organization of sales, is rapidly gaining the Russian market. Dropshipping opens up tremendous prospects not only for ordinary people, but also for the Russian…
In order to analyze the effect of chaos or order on the rate of decoherence in a subsystem we aim to distinguish effects of the two types of dynamics from those depending on the choice of the wave packet. To isolate the former we introduce…
Conventional survival analysis methods are typically ineffective to characterize heterogeneity in the population while such information can be used to assist predictive modeling. In this study, we propose a hybrid survival analysis method,…
We explore heterogeneous prices as a source of heterogeneous or stochastic demand. Heterogeneous prices could arise either because there is actual price variation among consumers or because consumers (mis)perceive prices differently. Our…
The time needed to exchange information in the physical world induces a delay term when the respective system is modeled by differential equations. Time delays are hence ubiquitous, being furthermore likely to induce instabilities and with…
Efficient risk transfer is an important condition for ensuring the sustainability of a market according to the established economics literature. In an inefficient market, significant financial imbalances may develop and potentially…
Decisions are often based on imprecise, uncertain or vague information. Likewise, the consequences of an action are often equally unpredictable, thus putting the decision maker into a twofold jeopardy. Assuming that the effects of an action…
We consider an intermediary's problem of dynamically matching demand and supply of heterogeneous types in a periodic-review fashion. More specifically, there are two disjoint sets of demand and supply types, and a reward associated with…
Demand functions for goods are generally cyclical in nature with characteristics such as trend or stochasticity. Most existing demand forecasting techniques in literature are designed to manage and forecast this type of demand functions.…
This paper introduces a novel framework for analysing equilibrium in structured production systems incorporating a static social division of labour by distinguishing between consumption goods traded in competitive markets and intermediate…
To improve the resilience of electric distribution systems, this paper proposes a stochastic multi-period mixed-integer linear programming model that determines where to underground distribution lines and how to coordinate mobile generators…