We propose a network-based structural model of credit risk to demonstrate how idiosyncratic and systemic shocks propagate across the banking system and evaluate the costs. The banking system is built as a network of heterogeneous banks which are connected with one another. In such a system,...

I introduce a simple model for simulating portfolio selection, based on a social network, word-of-mouth communication and unsuspicious and suspicious agents. It has been demonstrated that risk and returns are two decisive determinants in portfolio selection, with risk being highly pronounced. It...

Portfolio selection in this paper is done in an agent-based setting with individuals communicating through the social network. We explained why different individuals possess different portfolios in time and why portfolios change with the change of the environment. The developments of the games...