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This paper provides a framework for modeling the financial system with multiple illiquid assets when liquidation of illiquid assets is caused by failure to meet a leverage requirement. This extends the network model of Cifuentes, Shin &…

Risk Management · Quantitative Finance 2016-10-17 Zachary Feinstein , Fatena El-Masri

Latent Euclidean embedding models a given network by representing each node in a Euclidean space, where the probability of two nodes sharing an edge is a function of the distances between the nodes. This implies that for two nodes to share…

Social and Information Networks · Computer Science 2019-09-19 Clifford Anderson-Bergman , Phan Nguyen , Jose Cadena Pico

The role of Network Theory in the study of the financial crisis has been widely spotted in the latest years. It has been shown how the network topology and the dynamics running on top of it can trigger the outbreak of large systemic crisis.…

General Finance · Quantitative Finance 2016-05-09 Andrea Flori , Giuseppe Pappalardo , Michelangelo Puliga , Alessandro Chessa , Fabio Pammolli

In order to scale transaction rates for deployment across the global web, many cryptocurrencies have deployed so-called "Layer-2" networks of private payment channels. An idealized payment network behaves like a Credit Network, a model for…

Computer Science and Game Theory · Computer Science 2020-03-19 Geoffrey Ramseyer , Ashish Goel , David Mazieres

We undertake a fundamental study of network equilibria modeled as solutions of fixed point equations for monotone linear functions with saturation nonlinearities. The considered model extends one originally proposed to study systemic risk…

Dynamical Systems · Mathematics 2021-01-19 Leonardo Massai , Giacomo Como , Fabio Fagnani

As impressively shown by the financial crisis in 2007/08, contagion effects in financial networks harbor a great threat for the stability of the entire system. Without sufficient capital requirements for banks and other financial…

Risk Management · Quantitative Finance 2019-11-19 Daniel Ritter

This paper presents a formal analysis of the Lightning Network as a monetary system structurally diverging from Bitcoin's base-layer settlement model. We demonstrate that under increasing transaction demand, BTC transaction fees rise…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-06-27 Craig Steven Wright

Network equilibrium models represent a versatile tool for the analysis of interconnected objects and their relationships. They have been widely employed in both science and engineering to study the behavior of complex systems under various…

Adaptation and Self-Organizing Systems · Physics 2024-10-31 Omar Aloui , David Orden , Nizar Bel Hadj Ali , Landolf Rhode-Barbarigos

We study optimal monopoly pricing over consumer networks governed by general nonlinear utilities. In our framework, a consumer's utility is jointly determined by an individualized price and the consumption choices of their peers, propagated…

Statistics Theory · Mathematics 2026-05-15 Daniele Bracale , George Michailidis

In a recent paper [Bardella et al., Entropy 26 (6), 495 (2024)] we introduced a simplified Lattice Field Theory (LFT) framework that allows experimental recordings from major Brain-Computer Interfaces (BCIs) to be interpreted in a simple…

Statistical Mechanics · Physics 2026-04-08 Simone Franchini , Giampiero Bardella

We consider financial networks, where banks are connected by contracts such as debts or credit default swaps. We study the clearing problem in these systems: we want to know which banks end up in a default, and what portion of their…

Computational Engineering, Finance, and Science · Computer Science 2020-11-23 Pál András Papp , Roger Wattenhofer

In economic and financial networks, the strength of each node has always an important economic meaning, such as the size of supply and demand, import and export, or financial exposure. Constructing null models of networks matching the…

General Finance · Quantitative Finance 2014-12-09 Rossana Mastrandrea , Tiziano Squartini , Giorgio Fagiolo , Diego Garlaschelli

We introduce an information-theoretic framework that views learning as universal prediction under log loss, characterized through regret bounds. Central to the framework is an effective notion of architecture-based model complexity, defined…

Machine Learning · Computer Science 2025-11-04 Meir Feder , Ruediger Urbanke , Yaniv Fogel

The fundamental caching problem in networks asks to find an allocation of contents to a network of caches with the aim of maximizing the cache hit rate. Despite the problem's importance to a variety of research areas -- including not only…

Networking and Internet Architecture · Computer Science 2024-12-24 Robert Ganian , Fionn Mc Inerney , Dimitra Tsigkari

Complex network theory aims to model and analyze complex systems that consist of multiple and interdependent components. Among all studies on complex networks, topological structure analysis is of the most fundamental importance, as it…

Social and Information Networks · Computer Science 2010-09-15 Bo Yang , Jiming Liu

The events of the last few years revealed an acute need for tools to systematically model and analyze large financial networks. Many applications of such tools include the forecasting of systemic failures and analyzing probable effects of…

Computational Finance · Quantitative Finance 2012-09-19 Zhang Li , Ilya Pollak

Motivated by the quest for a logic for PTIME and recent insights that the descriptive complexity of problems from linear algebra is a crucial aspect of this problem, we study the solvability of linear equation systems over finite groups and…

Logic in Computer Science · Computer Science 2015-07-01 Anuj Dawar , Eryk Kopczynski , Bjarki Holm , Erich Grädel , Wied Pakusa

In this paper, we study the crucial elements of complex networks, namely nodes, and edges and their properties such as their community structure, which play an important role in dictating the robustness of the network towards structural…

Social and Information Networks · Computer Science 2021-02-04 V. Parimi , A. Pal , S. Ruj , P. Kumaraguru , T. Chakraborty

The total communicability of a network (or graph) is defined as the sum of the entries in the exponential of the adjacency matrix of the network, possibly normalized by the number of nodes. This quantity offers a good measure of how easily…

Social and Information Networks · Computer Science 2015-08-21 Francesca Arrigo , Michele Benzi

Learning monotonic models with respect to a subset of the inputs is a desirable feature to effectively address the fairness, interpretability, and generalization issues in practice. Existing methods for learning monotonic neural networks…

Machine Learning · Computer Science 2022-12-16 Xingchao Liu , Xing Han , Na Zhang , Qiang Liu
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