Cascading failures in interdependent economic networks

Shlomo Havlin; Dror Y. Kenett

doi:10.1007/978-3-319-20591-5_8

Cascading failures in interdependent economic networks

Shlomo Havlin, Dror Y. Kenett

Department of Physics - at Bar-Ilan University

Boston University

Research output: Chapter in Book/Report/Conference proceeding › Chapter › peer-review

6 Scopus citations

Abstract

Throughout the past decade, there has been a significant advance in understanding the structure and function of networks, and mathematical models of networks are now widely used to describe a broad range of complex systems, such as socio-economic systems. However, the significant majority of methods have dealt almost exclusively with individual networks treated as isolated systems. In reality an individual network is often just one component in a much larger complex multi-level network (network of networks, NON). The NON framework provides critical new insights into the structure and function of real-world complex systems. One such insight is that NON system is significantly more vulnerable to shocks and damages, which has lead to the development of the theory of cascading failures in interdependent networks. Here we provide an overview of this theory, and one example of its application to economic systems.

Original language	English
Title of host publication	Springer Proceedings in Complexity
Publisher	Springer
Pages	87-97
Number of pages	11
DOIs	https://doi.org/10.1007/978-3-319-20591-5_8
State	Published - 2015

Publication series

Name	Springer Proceedings in Complexity
ISSN (Print)	2213-8684
ISSN (Electronic)	2213-8692

Bibliographical note

Publisher Copyright:
© 2015, The Author(s).

Funding

Acknowledgements We acknowledge financial support from Office of Naval Research (ONR), DTRA, BSF, the LINC (No. 289447) and the Multiplex (No. 317532) EU projects, the DFG, and the Israel Science Foundation. We acknowledge financial support from Office of Naval Research (ONR), DTRA, BSF, the LINC (No. 289447) and the Multiplex (No. 317532) EU projects, the DFG, and the Israel Science Foundation.

Funders	Funder number
LINC	289447, 317532
Office of Naval Research
Defense Threat Reduction Agency
Brain Science Foundation
Deutsche Forschungsgemeinschaft
United States-Israel Binational Science Foundation
Israel Science Foundation

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Cascading failures in interdependent economic networks

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