Centrality-Based Heuristics in Risk Management: A Network-agent Dynamics for Analyzing Systemic Failure

Centrality-Based Heuristics in Risk Management: A Network-agent Dynamics for Analyzing Systemic Failure | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Article Centrality-Based Heuristics in Risk Management: A Network-agent Dynamics for Analyzing Systemic Failure Chulwook Park This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-4197398/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract This study scrutinized the mechanisms for mitigating systemic risk in scale-free networks, modeling on the functions of memorized capital, social learning, and centrality-based heuristics. We deployed a network-agent dynamic to examine the distribution of vulnerabilities and explored how node centrality impacts decisions related to protective investment. Our mechanical approach encompassed advanced computational techniques and interactive simulations, enabling us to monitor the relevant state variables effectively. By focusing on the dynamics of individual protective investment, we observed that nodes with higher centrality are inclined to invest more significantly in protection. These outcomes provide crucial understandings of the risk propagation and the tactics to mitigate such risks, which underscores the significance of strategic cooperation and effective regulation in bolstering network resilience and stability. Physical sciences/Mathematics and computing Physical sciences/Mathematics and computing/Applied mathematics Systemic Risk Network-agent Dynamic Centrality-Based Heuristics Protective Investment Memorized Capital Full Text Additional Declarations No competing interests reported. Supplementary Files supplement.docx Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-4197398","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Article","associatedPublications":[],"authors":[{"id":290854016,"identity":"1439fa3c-c2b8-4428-9ab3-27aa8c39b325","order_by":0,"name":"Chulwook Park","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAAzklEQVRIiWNgGAWjYHACxsc/fkjIkaSF2Zixx8IYzuUhQgubNANbRWID0VrM2c8YGxfwSKTPn91jwPCjhkHenpAWy54cw8czLCRyN9w5Y8DYc4zBsIeQFoMbvJsNeHiAWiRyDBh4GxgYidGyTYKHTSJdfkaOAePfBgZ7orRIA7UkMNzIMWAG2pJIUItlT/5nw5k9EoYbbqQVHJY5JpHcc4CAFnP2Y4kPPvyok5efkbzx4ZsaG9v2BkIOQ+YAzZcg5Cw0LaNgFIyCUTAKsAIAC5A54JoI8QgAAAAASUVORK5CYII=","orcid":"","institution":"International Institute for Applied Systems Analysis (IIASA)","correspondingAuthor":true,"prefix":"","firstName":"Chulwook","middleName":"","lastName":"Park","suffix":""}],"badges":[],"createdAt":"2024-04-01 00:59:29","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-4197398/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-4197398/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":55556014,"identity":"8bdb8602-d35c-4f61-9a51-277b860c1700","added_by":"auto","created_at":"2024-04-30 00:49:20","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":941962,"visible":true,"origin":"","legend":"","description":"","filename":"manuscript.pdf","url":"https://assets-eu.researchsquare.com/files/rs-4197398/v1_covered_d01c196e-3331-4c50-96b2-62f22a12642d.pdf"},{"id":54665075,"identity":"e9b448d9-4013-4420-9317-bb93946a90b6","added_by":"auto","created_at":"2024-04-15 03:09:54","extension":"docx","order_by":0,"title":"","display":"","copyAsset":false,"role":"supplement","size":4512667,"visible":true,"origin":"","legend":"","description":"","filename":"supplement.docx","url":"https://assets-eu.researchsquare.com/files/rs-4197398/v1/660a369b04766f8344803ca9.docx"}],"financialInterests":"No competing interests reported.","formattedTitle":"Centrality-Based Heuristics in Risk Management: A Network-agent Dynamics for Analyzing Systemic Failure","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Systemic Risk, Network-agent Dynamic, Centrality-Based Heuristics, Protective Investment, Memorized Capital","lastPublishedDoi":"10.21203/rs.3.rs-4197398/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-4197398/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"This study scrutinized the mechanisms for mitigating systemic risk in scale-free networks, modeling on the functions of memorized capital, social learning, and centrality-based heuristics. 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