In financial market, one of complex systems, there is highly nonlinear interaction between heterogeneous traders. Due to this nonlinear interaction, emergent behavior, which is so called ‘stylized facts' occurs in financial market. To understand impact of interaction between heterogeneous...

We study the effect of network formation on cooperation in the finitely repeated prisoner’s dilemma based on the game-theoretical model approach. We suggest the model explaining the effect of endogenous network formation on cooperation. We find a subgame perfect strongly pairwise-Nash...

Based on the game-theoretical model approach, I analyze the equilibrium state in the finitely repeated networked prisoner's dilemma. From the 1st round to round t_c, all players play the simple two-person prisoner's dilemma game with a partner randomly selected. From round t_c to the final...

The systemic risk induced by a connection among financial objects is generally measured by returns, volatility, interbank loans, etc. Nevertheless, these measures do not capture the microscale component of the interconnections induced by heterogeneous investor activity. In this paper, we exploit...