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The networked nature of supply chains makes them susceptible to systemic risk, where local firm failures can propagate through firm interdependencies that can lead to cascading supply chain disruptions. The systemic risk of supply chains…

General Economics · Economics 2025-05-01 Giacomo Zelbi , Leonardo Niccolò Ialongo , Stefan Thurner

Resilient supply chains are often inherently dependent on the nature of their complex interconnected networks that are simultaneously multi-dimensional and multi-layered. This article presents a Supply Chain Network (SCN) model that can be…

National economies rest on networks of millions of customer-supplier relations. Some companies -- in the case of their default -- can trigger significant cascades of shock in the supply-chain network and are thus systemically risky. Up to…

General Economics · Economics 2021-10-13 Tobias Reisch , Georg Heiler , Christian Diem , Stefan Thurner

Recent crises like the COVID-19 pandemic and geopolitical tensions have exposed vulnerabilities and caused disruptions of supply chains, leading to product shortages, increased costs, and economic instability. This has prompted increasing…

Physics and Society · Physics 2025-06-27 Anna Mancini , Balázs Lengyel , Riccardo Di Clemente , Giulio Cimini

Realistic credit risk assessment, the estimation of losses from counterparty's failure, is central for the financial stability. Credit risk models focus on the financial conditions of borrowers and only marginally consider other risks from…

Statistical Finance · Quantitative Finance 2023-05-09 Zlata Tabachová , Christian Diem , András Borsos , Csaba Burger , Stefan Thurner

Production networks constitute the backbone of every economic system. They are inherently fragile as several recent crises clearly highlighted. Estimating the system-wide consequences of local disruptions (systemic risk) requires detailed…

In today's global economy, supply chain (SC) entities have become increasingly interconnected with demand and supply relationships due to the need for strategic outsourcing. Such interdependence among firms not only increases efficiency but…

Physics and Society · Physics 2020-11-16 Qihui Yang , Caterina Scoglio , Don Gruenbacher

Global crises and regulatory developments require increased supply chain transparency and resilience. Companies do not only need to react to a dynamic environment but have to act proactively and implement measures to prevent production…

Due to the increasingly complex and interconnected nature of global supply chain networks (SCNs), a recent strand of research has applied network science methods to model SCN growth and subsequently analyse various topological features,…

Physics and Society · Physics 2018-03-28 Supun Perera , Michael Bell , Michiel Bliemer

The dynamics of collaboration networks of firms follow a life-cycle of growth and decline. That does not imply they also become less resilient. Instead, declining collaboration networks may still have the ability to mitigate shocks from…

Physics and Society · Physics 2021-02-24 Frank Schweitzer , Giona Casiraghi , Mario V. Tomasello , David Garcia

Production in an economy is a set of firms' activities as suppliers and customers; a firm buys goods from other firms, puts value added and sells products to others in a giant network of production. Empirical study is lacking despite the…

Physics and Society · Physics 2010-11-19 Yoshi Fujiwara , Hideaki Aoyama

Crises like COVID-19 or the Japanese earthquake in 2011 exposed the fragility of corporate supply networks. The production of goods and services is a highly interdependent process and can be severely impacted by the default of critical…

General Economics · Economics 2021-04-16 Christian Diem , András Borsos , Tobias Reisch , János Kertész , Stefan Thurner

Strong local clusters help firms compete on global markets. One explanation for this is that firms benefit from locating close to their suppliers and customers. However, the emergence of global supply chains shows that physical proximity is…

Physics and Society · Physics 2024-05-14 Sándor Juhász , Zoltán Elekes , Virág Ilyés , Frank Neffke

The Covid-19 pandemic drastically emphasized the fragility of national and international supply networks (SNs),leading to significant supply shortages of essential goods for people, such as food and medical equipment. Severe disruptions…

We develop a model where firms determine the price at which they sell their differentiable goods, the volume that they produce, and the inputs (types and amounts) that they purchase from other firms. A steady-state production network…

Multiagent Systems · Computer Science 2025-04-23 Tuong Manh Vu , Ernesto Carrella , Robert Axtell , Omar A. Guerrero

A number of recent contributions have put forward the topological structure of production networks as a key determinant of macro-economic dynamics. However, firm-to-firm production networks data is generally not available. Against this…

Physics and Society · Physics 2026-03-24 Mitja Devetak , Antoine Mandel

While many national and international climate policies clearly outline decarbonization targets and the timelines for achieving them, there is a notable lack of effort to objectively monitor progress. A significant share of the transition…

General Economics · Economics 2025-12-10 Johannes Stangl , András Borsos , Stefan Thurner

Supply chains are the backbone of the global economy. Disruptions to them can be costly. Centrally managed supply chains invest in ensuring their resilience. Decentralized supply chains, however, must rely upon the self-interest of their…

Computer Science and Game Theory · Computer Science 2020-01-15 Victor Amelkin , Rakesh Vohra

To estimate the reaction of economies to political interventions or external disturbances, input-output (IO) tables -- constructed by aggregating data into industrial sectors -- are extensively used. However, economic growth, robustness,…

General Economics · Economics 2023-02-23 Christian Diem , András Borsos , Tobias Reisch , János Kertész , Stefan Thurner

Recent crises have shown that the knowledge of the structure of input-output networks at the firm level is crucial when studying economic resilience from the microscopic point of view of firms that rewire their connections under supply and…

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