Related papers: Dynamic Debt Swapping in Financial Networks
Financial network games model payment incentives in the context of networked liabilities. In this paper, we advance the understanding of incentives in financial networks in two important directions: minimal clearing (arising, e.g., as a…
Districting-and-routing is a strategic problem aiming to aggregate basic geographical units (e.g., zip codes) into delivery districts. Its goal is to minimize the expected long-term routing cost of performing deliveries in each district…
We consider a financial network represented at any time instance by a random liability graph which evolves over time. The agents connect through credit instruments borrowed from each other or through direct lending, and these create the…
In routing games, agents pick their routes through a network to minimize their own delay. A primary concern for the network designer in routing games is the average agent delay at equilibrium. A number of methods to control this average…
The structure of many financial networks is protected by privacy and has to be inferred from aggregate observables. Here we consider one of the most successful network reconstruction methods, producing random graphs with desired link…
Credit networks rely on decentralized, pairwise trust relationships (channels) to exchange money or goods. Credit networks arise naturally in many financial systems, including the recent construct of payment channel networks in blockchain…
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…
Given a graph where every vertex has exactly one labeled token, how can we most quickly execute a given permutation on the tokens? In (sequential) token swapping, the goal is to use the shortest possible sequence of swaps, each of which…
A hypergraph is a set V of vertices and a set of non-empty subsets of V, called hyperedges. Unlike graphs, hypergraphs can capture higher-order interactions in social and communication networks that go beyond a simple union of pairwise…
Systemic risk arises as a multi-layer network phenomenon. Layers represent direct financial exposures of various types, including interbank liabilities, derivative- or foreign exchange exposures. Another network layer of systemic risk…
Given a graph $G$, a vertex switch of $v \in V(G)$ results in a new graph where neighbors of $v$ become nonneighbors and vice versa. This operation gives rise to an equivalence relation over the set of labeled digraphs on $n$ vertices. The…
In this paper we estimate the propagation of liquidity shocks through interbank markets when the information about the underlying credit network is incomplete. We show that techniques such as Maximum Entropy currently used to reconstruct…
While operating communication networks adaptively may improve utilization and performance, frequent adjustments also introduce an algorithmic challenge: the re-optimization of traffic engineering solutions is time-consuming and may limit…
The \textsc{Housing Market} problem is a widely studied resource allocation problem. In this problem, each agent can only receive a single object and has preferences over all objects. Starting from an initial endowment, we want to reach a…
We propose a dynamic network model where two mechanisms control the probability of a link between two nodes: (i) the existence or absence of this link in the past, and (ii) node-specific latent variables (dynamic fitnesses) describing the…
Graphs are essential representations of many real-world data such as social networks. Recent years have witnessed the increasing efforts made to extend the neural network models to graph-structured data. These methods, which are usually…
One of the first graph theoretical problems which got serious attention (already in the fifties of the last century) was to decide whether a given integer sequence is equal to the degree sequence of a simple graph (or it is {\em graphical}…
In this paper we present a novel algorithm to study the evolution of credit risk across complex multilayer networks. Pagerank-like algorithms allow for the propagation of an influence variable across single networks, and allow quantifying…
Extreme valuation and volatility of cryptocurrencies require investors to diversify often which demands secure exchange protocols. A cross-chain swap protocol allows distrusting parties to securely exchange their assets. However, the…
Many phenomena in real world social networks are interpreted as spread of influence between activated and non-activated network elements. These phenomena are formulated by combinatorial graphs, where vertices represent the elements and…