An Adaptive Hierarchical Network Model for Studying the Structure of Economic Network

The interdependence of financial institutions is primarily responsible for creating a systemic hierarchy in the industry. In this paper, an Adaptive Hierarchical Network Model is proposed to study the problem of hierarchical relationships arising from different individuals in the economic domain. In...

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Bibliographic Details
Main Authors: Xiaoteng Yang, Zhenqiang Wu, Shumaila Javaid
Format: Article
Language:English
Published: MDPI AG 2022-05-01
Series:Entropy
Subjects:
Online Access:https://www.mdpi.com/1099-4300/24/5/702
Description
Summary:The interdependence of financial institutions is primarily responsible for creating a systemic hierarchy in the industry. In this paper, an Adaptive Hierarchical Network Model is proposed to study the problem of hierarchical relationships arising from different individuals in the economic domain. In the presented dynamically evolving network model, new directed edges are generated depending on the existing nodes and the hierarchical structures among the network, and these edges decay over time. When the preference of nodes in the network for higher ranks exceeds a certain threshold value, the equality state in the network becomes unstable and rank states emerge. Meanwhile, we select four real data sets for model evaluation and observe the resilience in the network hierarchy evolution and the differences formed by different patterns of hierarchy preference mechanisms, which help us better understand data science and network dynamics evolution.
ISSN:1099-4300