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One of the most defining features of the global financial network is its inherent complex and intertwined structure. From the perspective of systemic risk it is important to understand the influence of this network structure on default…

Risk Management · Quantitative Finance 2019-12-11 Nils Detering , Thilo Meyer-Brandis , Konstantinos Panagiotou , Daniel Ritter

Resilience is a system's ability to maintain its function when perturbations and errors occur. Whilst we understand low-dimensional networked systems' behavior well, our understanding of systems consisting of a large number of components is…

Systems and Control · Electrical Eng. & Systems 2021-09-08 Giannis Moutsinas , Mengbang Zou , Weisi Guo

We study the mean field approximation of a recent model of cascades on networks relevant to the investigation of systemic risk control in financial networks. In the model, the hypothesis of a trend reinforcement in the stochastic process…

Physics and Society · Physics 2007-11-13 Jan Lorenz , Stefano Battiston

We review recent results on the dynamics of social networks which suggest that the interplay between the network formation process and volatility may lead to the occurrence of discontinuous phase transitions and phase coexistence in a large…

Physics and Society · Physics 2009-11-11 George C. M. A. Ehrhardt , Matteo Marsili , Fernando Vega-Redondo

It was recently recognized that interdependencies among different networks can play a crucial role in triggering cascading failures and hence system-wide disasters. A recent model shows how pairs of interdependent networks can exhibit an…

Physics and Society · Physics 2012-12-06 Di Zhou , Gregorio D'Agostino , Antonio Scala , H. Eugene Stanley

Large but rare cascades triggered by small initial shocks are present in most of the infrastructure networks. Here we present a simple model for cascading failures based on the dynamical redistribution of the flow on the network. We show…

Other Condensed Matter · Physics 2009-11-10 Paolo Crucitti , Vito Latora , Massimo Marchiori

Power-law networks such as the Internet, terrorist cells, species relationships, and cellular metabolic interactions are susceptible to node failures, yet maintaining network connectivity is essential for network functionality.…

Physics and Society · Physics 2015-05-08 Sarah LaRocca , Seth Guikema

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

In this paper we explore the evolution of transport capacity on networks with stochastic incidence of damage and accumulation of faults in their connections. For each damaged configuration of the network, we analyze a Markovian random…

Physics and Society · Physics 2019-09-05 A. P. Riascos , J. Wang-Michelitsch , T. M. Michelitsch

Many social, technological and biological interactions involve network relationships whose outcome intimately depends on the structure of the network and on the strengths of the connections. Yet, although much information is now available…

Statistical Mechanics · Physics 2009-11-10 Guido Caldarelli , Fabrizio Coccetti , Paolo De Los Rios

Networks provide a skeleton for the spread of contagions, like, information, ideas, behaviors and diseases. Many times networks over which contagions diffuse are unobserved and need to be inferred. Here we apply survival theory to develop…

Social and Information Networks · Computer Science 2013-05-17 Manuel Gomez Rodriguez , Jure Leskovec , Bernhard Schoelkopf

The 2008 financial crisis illustrated the need for a thorough, functional understanding of systemic risk in strongly interconnected financial structures. Dynamic processes on complex networks being intrinsically difficult, most recent…

General Finance · Quantitative Finance 2015-08-05 Matteo Smerlak , Brady Stoll , Agam Gupta , James S. Magdanz

In many cases of attacks or failures, memory effects play a significant role. Therefore, we present a model that not only considers the dependencies between nodes but also incorporates the memory effects of attacks. Our research…

Physics and Society · Physics 2023-06-21 Yanpeng Zhu , Lei Chen , Fanyuan Meng , Chun-Xiao Jia , Run-Ran Liu

Are large biological extinctions such as the Cretaceous/Tertiary KT boundary due to a meteorite, extreme volcanic activity or self-organized critical extinction cascades? Are commercial successes due to a progressive reputation cascade or…

Statistical Mechanics · Physics 2009-11-10 D. Sornette , F. Deschatres , T. Gilbert , Y. Ageon

We study the epidemic spreading on spatial networks where the probability that two nodes are connected decays with their distance as a power law. As the exponent of the distance dependence grows, model networks smoothly transition from the…

Physics and Society · Physics 2021-02-03 Matúš Medo

We study the evolution of the network properties of a populated network embedded in a genotype space characterised by either a low or a high number of potential links, with particular emphasis on the connectivity and clustering. Evolution…

Statistical Mechanics · Physics 2007-05-23 Paul Anderson , Henrik Jeldtoft Jensen

The emergence and evolution of real-world systems have been extensively studied in the last few years. However, equally important phenomena are related to the dynamics of systems' collapse, which has been less explored, especially when they…

Physics and Society · Physics 2019-09-27 Jie Li , Chengyi Xia , Gaoxi Xiao , Yamir Moreno

We investigate the growth of connectivity in a network. In our model, starting with a set of disjoint nodes, links are added sequentially. Each link connects two nodes, and the connection rate governing this random process is proportional…

Statistical Mechanics · Physics 2012-02-16 E. Ben-Naim , P. L. Krapivsky

We investigate the emergence and persistence of communities through a recently proposed mechanism of adaptive rewiring in coevolutionary networks. We characterize the topological structures arising in a coevolutionary network subject to an…

Physics and Society · Physics 2015-06-22 J. C. González-Avella , M. G. Cosenza , J. L. Herrera , K. Tucci

Social, biological and economic networks grow and decline with occasional fragmentation and re-formation, often explained in terms of external perturbations. We show that these phenomena can be a direct consequence of simple imitation and…

Populations and Evolution · Quantitative Biology 2011-09-28 Matteo Cavaliere , Sean Sedwards , Corina E. Tarnita , Martin A. Nowak , Attila Csikász-Nagy