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Emergence of complexity in financial networks. (English) Zbl 1122.91324

Ben-Naim, Eli (ed.) et al., Complex networks. Papers from the conference ‘complex networks: structure, dynamics, and function’, 23rd annual conference of the Center for Nonlinear Studies, Santa Fe, NM, USA, May 12–16, 2003. Berlin: Springer (ISBN 3-540-22354-1/hbk). Lecture Notes in Physics 650, 399-423 (2004).
Summary: We present here a brief summary of the various possible applications of network theory in the field of finance. Since we want to characterize different systems by means of simple and universal features, graph theory could represent a rather powerful methodology. In the following we report our activity in three different subfields, namely the board and director networks, the networks formed by prices correlations and the stock ownership networks. In most of the cases these three kind of networks display scale-free properties making them interesting in their own. Nevertheless, we want to stress here that the main utility of this methodology is to provide new measures of the real data sets in order to validate the different models.
For the entire collection see [Zbl 1051.82001].

MSC:

91B28 Finance etc. (MSC2000)
90B10 Deterministic network models in operations research
90B15 Stochastic network models in operations research
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