scholarly journals Network Entropy and Systemic Risk in Dynamic Banking Systems

Complexity ◽  
2017 ◽  
Vol 2017 ◽  
pp. 1-7 ◽  
Author(s):  
Liang He ◽  
Shouwei Li

We investigate network entropy of dynamic banking systems, where interbank networks analyzed include random networks, small-world networks, and scale-free networks. We find that network entropy is positively correlated with the effect of systemic risk in the three kinds of interbank networks and that network entropy in the small-world network is the largest, followed by those in the random network and the scale-free network.

Symmetry ◽  
2019 ◽  
Vol 11 (3) ◽  
pp. 299 ◽  
Author(s):  
Yuhui Gong ◽  
Qian Yu

Conformity is a common phenomenon among people in social networks. In this paper, we focus on customers’ conformity behaviors in a symmetry market where customers are located in a social network. We establish a conformity model and analyze it in ring network, random network, small-world network, and scale-free network. Our simulations shown that topology structure, network size, and initial market share have significant effects on the evolution of customers’ conformity behaviors. The market will likely converge to a monopoly state in small-world networks but will form a duopoly market in scale networks. As the size of the network increases, there is a greater possibility of forming a dominant group of preferences in small-world network, and the market will converge to the monopoly of the product which has the initial selector in the market. Also, network density will become gradually significant in small-world networks.


Complexity ◽  
2018 ◽  
Vol 2018 ◽  
pp. 1-14 ◽  
Author(s):  
Xiuwen Fu ◽  
Yongsheng Yang ◽  
Haiqing Yao

Previous research of wireless sensor networks (WSNs) invulnerability mainly focuses on the static topology, while ignoring the cascading process of the network caused by the dynamic changes of load. Therefore, given the realistic features of WSNs, in this paper we research the invulnerability of WSNs with respect to cascading failures based on the coupled map lattice (CML). The invulnerability and the cascading process of four types of network topologies (i.e., random network, small-world network, homogenous scale-free network, and heterogeneous scale-free network) under various attack schemes (i.e., random attack, max-degree attack, and max-status attack) are investigated, respectively. The simulation results demonstrate that the rise of interference R and coupling coefficient ε will increase the risks of cascading failures. Cascading threshold values Rc and εc exist, where cascading failures will spread to the entire network when R>Rc or ε>εc. When facing a random attack or max-status attack, the network with higher heterogeneity tends to have a stronger invulnerability towards cascading failures. Conversely, when facing a max-degree attack, the network with higher uniformity tends to have a better performance. Besides that, we have also proved that the spreading speed of cascading failures is inversely proportional to the average path length of the network and the increase of average degree k can improve the network invulnerability.


2012 ◽  
Vol 54 (1-2) ◽  
pp. 3-22 ◽  
Author(s):  
J. BARTLETT ◽  
M. J. PLANK

AbstractRandom networks were first used to model epidemic dynamics in the 1950s, but in the last decade it has been realized that scale-free networks more accurately represent the network structure of many real-world situations. Here we give an analytical and a Monte Carlo method for approximating the basic reproduction number ${R}_{0} $ of an infectious agent on a network. We investigate how final epidemic size depends on ${R}_{0} $ and on network density in random networks and in scale-free networks with a Pareto exponent of 3. Our results show that: (i) an epidemic on a random network has the same average final size as an epidemic in a well-mixed population with the same value of ${R}_{0} $; (ii) an epidemic on a scale-free network has a larger average final size than in an equivalent well-mixed population if ${R}_{0} \lt 1$, and a smaller average final size than in a well-mixed population if ${R}_{0} \gt 1$; (iii) an epidemic on a scale-free network spreads more rapidly than an epidemic on a random network or in a well-mixed population.


2010 ◽  
Vol 21 (08) ◽  
pp. 1001-1010 ◽  
Author(s):  
BO SHEN ◽  
YUN LIU

We study the dynamics of minority opinion spreading using a proposed simple model, in which the exchange of views between agents is determined by a quantity named confidence scale. To understand what will promote the success of minority, two types of networks, random network and scale-free network are considered in opinion formation. We demonstrate that the heterogeneity of networks is advantageous to the minority and exchanging views between more agents will reduce the opportunity of minority's success. Further, enlarging the degree that agents trust each other, i.e. confidence scale, can increase the probability that opinions of the minority could be accepted by the majority. We also show that the minority in scale-free networks are more sensitive to the change of confidence scale than that in random networks.


Author(s):  
Burgert A. Senekal ◽  
Cornelia Geldenhuys

Language has already been approached as a system since De Saussure, and recently the theory of complex systems has been applied within Linguistics as well. Complex systems, however, can also be modelled as complex networks, and a variety of studies investigating the network structure of language have already been undertaken worldwide. The current study follows in the footsteps of overseas studies and investigates the network structure of Afrikaans by analysing a word co-occurrence network compiled from André P. Brink’s novel Donkermaan. Link distribution patterns and the small-world phenomenon are investigated and then compared to the English and Dutch translations of this novel. The current study represents the first network study of Afrikaans. Firstly, the random network model of Erdös and Rényi and the scale-free network model by Barabási and Albert are used to indicate that the link distribution patterns in a word co-occurrence network of Afrikaans are better described according to the network model of Barabási and Albert than by that of Erdös and Rényi. Furthermore, the method proposed by Humphreys and Gurney to define smallworldedness (S) was used to quantify this phenomenon for the Afrikaans, as well as English and Dutch versions of the text. With 522 ≤ S ≤ 797, it is indicated that Afrikaans, English and Dutch are all clearly small-world networks. Suggestions are also made for further research.


2018 ◽  
Vol 2018 ◽  
pp. 1-9
Author(s):  
Lifu Wang ◽  
Yali Zhang ◽  
Jingxiao Han ◽  
Zhi Kong

In this paper, the controllability issue of complex network is discussed. A new quantitative index using knowledge of control centrality and condition number is constructed to measure the controllability of given networks. For complex networks with different controllable subspace dimensions, their controllability is mainly determined by the control centrality factor. For the complex networks that have the equal controllable subspace dimension, their different controllability is mostly determined by the condition number of subnetworks’ controllability matrix. Then the effect of this index is analyzed based on simulations on various types of network topologies, such as ER random network, WS small-world network, and BA scale-free network. The results show that the presented index could reflect the holistic controllability of complex networks. Such an endeavour could help us better understand the relationship between controllability and network topology.


Author(s):  
Jinlong Ma ◽  
Zhichao Sun ◽  
Yongqiang Zhang ◽  
Xiangyang Xu ◽  
Ruimei Zhao ◽  
...  

In order to study traffic dynamics on multilayer networks, it is of great significance to build a network model which can more exactly reflect the actual network layered structure characteristics. In this paper, a three-layer network model in which two logical layers are mapped on one physical layer is established, and the traffic capacities of three kinds of multilayer networks with different combinations of logical layers are compared. Simulation results show that when the physical layer is the same random network, the network whose logical layers are two random networks has the optimal traffic capacity, the network with one random network and one scale-free network in the logical layers has the better traffic capacity than the network whose logical layers are two scale-free networks.


2011 ◽  
Vol 22 (08) ◽  
pp. 765-773
Author(s):  
ZHE-JING BAO ◽  
WEN-JUN YAN ◽  
CHUANG-XIN GUO

For the complex networks, including scale-free, small-world, local-world and random networks, the global quantitative evaluation of attack-induced cascade is investigated in this paper by introducing the risk assessment, which integrates the probability of occurrence with the damage size of attacks on nodes. It is discovered by simulations, among the several kinds of networks, that the small-world network has the largest risk assessment of attack-induced cascade; the risk assessment of three other networks are all very low and the most protection against attack should be given to the small-world network accordingly. Furthermore, the percentage of the most fragile nodes in the scale-free network is very low, compared with that in the small-world network.


2006 ◽  
Vol 20 (27) ◽  
pp. 1755-1761 ◽  
Author(s):  
BAIBAI FU ◽  
ZIYOU GAO ◽  
FASHENG LIU ◽  
XIANJUAN KONG

An express highway itself is not a scale-free network, while the Express Passenger Transport System (EPTS) on the express highway network has the properties of a small-world and scale-free network. Data analysis based on the observation of the EPTS in Shandong province, China, shows that the EPTS has the properties of scale-free networks and the power exponent λ of the distribution is equal to about 2.1. Based on the scale-free network topology structure of the EPTS network, the construction of the EPTS network will be more efficient and robust.


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