Economic agents care about their relative well-being, and the comparisons are usually local. We capture this using a network model, in which an agent's payoff depends on the ranking of their allocation among their network neighbors. Given a network, an allocation is called α-stable if no...

Based on the input-output table and the supplier-customer data disclosed by the listed companies in China, this paper builds China's production network on both industry level and firm level. We describe the characteristics of such network using various network indexes and obtain the following...

We investigate the effect of portfolio diversification on banking systemic risk, where the network effect is incorporated. We analyze three kinds of interbank networks, namely, random networks, small-world networks and scale-free networks. We show that the effect of portfolio diversification on...