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Large scale networks delineating collective dynamics often exhibit cascading failures across nodes leading to a system-wide collapse. Prominent examples of such phenomena would include collapse on financial and economic networks.…

Statistical Finance · Quantitative Finance 2020-01-07 Sudarshan Kumar , Tiziana Di Matteo , Anindya S. Chakrabarti

Spatial distribution of the human population is distinctly heterogeneous, e.g. showing significant difference in the population density between urban and rural areas. In the historical perspective, i.e. on the timescale of centuries, the…

Adaptation and Self-Organizing Systems · Physics 2022-08-30 Anna Zincenko , Sergei Petrovskii , Vitaly Volpert

A dynamic herding model with interactions of trading volumes is introduced. At time $t$, an agent trades with a probability, which depends on the ratio of the total trading volume at time $t-1$ to its own trading volume at its last trade.…

Trading and Market Microstructure · Quantitative Finance 2009-11-03 F. Ren , B. Zheng , P. Chen

Common asset holdings are widely believed to have been the primary vector of contagion in the recent financial crisis. We develop a network approach to the amplification of financial contagion due to the combination of overlapping…

General Finance · Quantitative Finance 2012-11-06 Fabio Caccioli , Munik Shrestha , Cristopher Moore , J. Doyne Farmer

We propose a model with heterogeneous interacting traders which can explain some of the stylized facts of stock market returns. In the model synchronization effects, which generate large fluctuations in returns, can arise either from an…

adap-org · Physics 2007-05-23 Giulia Iori

This study uses hierarchical structure methods (minimal spanning tree, (MST) and hierarchical tree, (HT)) to examine the hierarchical structures of the United State (US) foreign trade by using the real prices of their commodity export and…

Statistical Finance · Quantitative Finance 2014-06-30 Ersin Kantar

We investigate fracture toughness of architected interfaces and their ability to maintain structural integrity and provide stable damage propagation conditions beyond the failure load. We propose theoretical and numerical frameworks to…

Applied Physics · Physics 2024-02-27 Michelle L. S. Hedvard , Marcelo A. Dias , Michal K. Budzik

As a dynamical complex system, traffic is characterized by a transition from free flow to congestions, which is mostly studied in highways. However, despite its importance in developing congestion mitigation strategies, the understanding of…

Physics and Society · Physics 2015-12-02 Feilong Wang , Daqing Li , Xiaoyun Xu , Ruoqian Wu , Shlomo Havlin

This paper investigates how geopolitical conflict reshapes trade patterns, focusing on the economic consequences of the Russo-Ukrainian war on European and global trade flows. War is conceptualized as a shock that increases bilateral trade…

General Economics · Economics 2026-05-19 Luigi Capoani , Margarita Shnaider , Piergiorgio Martini

Theory of complex networks proved successful in the description of a variety of static networks ranging from biology to computer and social sciences and to economics and finance. Here we use network models to describe the evolution of a…

Physics and Society · Physics 2014-08-25 Zhen Zhu , Federica Cerina , Alessandro Chessa , Guido Caldarelli , Massimo Riccaboni

The topology of the network of load transmitting connections plays an essential role in the cascading failure dynamics of complex systems driven by the redistribution of load after local breakdown events. In particular, as the network…

Disordered Systems and Neural Networks · Physics 2023-11-21 G. Pál , Zs. Danku , A. Batool , V. Kádár , N. Yoshioka , N. Ito , G. Ódor , F. Kun

This study investigates the inherently random structures of dry bulk shipping networks, often likened to a taxi service, and identifies the underlying trade dynamics that contribute to this randomness within individual cargo sub-networks.…

Mathematical Finance · Quantitative Finance 2025-02-04 Yan Li , Carol Alexander , Michael Coulon , Istvan Kiss

Trust mechanisms diverge between centralized and decentralized exchanges, representing distinct sociotechnical governance paradigms. However, quantifying trust dynamics and their redistribution between these architectures remains…

General Economics · Economics 2026-05-04 Xintong Wu , Wanlin Deng , Yutong Quan , Lin William Cong , Luyao Zhang

Establishing a resilient food trade system is an international consensus on safeguarding food security amid growing disruptions. However, a unified resilience framework has yet to be established, leading to the proliferation of diverse…

Physics and Society · Physics 2025-09-26 Si-Yao Wei , Wei-Xing Zhou

Threats on the stability of a financial system may severely affect the functioning of the entire economy, and thus considerable emphasis is placed on the analyzing the cause and effect of such threats. The financial crisis in the current…

Risk Management · Quantitative Finance 2014-10-28 Piotr Berman , Bhaskar DasGupta , Lakshmi Kaligounder , Marek Karpinski

Exerting fluctuations is a part of our daily life: traffic noise, heartbeat, opinion poll, currency exchange rate, electrical current, chemical reactions - they all permanently fluctuate. One of the most important questions is why the…

Physics and Society · Physics 2016-09-08 Maria K. Koleva

In the study of dynamical systems on networks/graphs, a key theme is how the network topology influences stability for steady states or synchronized states. Ideally, one would like to derive conditions for stability or instability that…

Dynamical Systems · Mathematics 2020-07-01 Raffaella Mulas , Christian Kuehn , Jürgen Jost

The purpose of this paper is to advance the understanding of the conditions that give rise to flash crash contagion, particularly with respect to overlapping asset portfolio crowding. To this end, we designed, implemented, and assessed a…

Trading and Market Microstructure · Quantitative Finance 2019-02-01 James Paulin , Anisoara Calinescu , Michael Wooldridge

We develop an analytic framework to understand fragmentation in turbulent, self-gravitating media. Previously, we showed some properties of turbulence can be predicted with the excursion-set formalism. Here, we generalize to fully…

Cosmology and Nongalactic Astrophysics · Physics 2013-07-02 Philip F. Hopkins

We present a set of models of the main stylized facts of market price fluctuations. These models comprise dynamical evolution with threshold dynamics and Langevin price equation with multiplicative noise, percolation models to describe the…

Statistical Mechanics · Physics 2008-12-02 D. Sornette , D. Stauffer , H. Takayasu