• DocumentCode
    2723261
  • Title

    Which Networks are Least Susceptible to Cascading Failures?

  • Author

    Blume, Lawrence ; Easley, David ; Kleinberg, Jon ; Kleinberg, Robert ; Tardos, Éva

  • Author_Institution
    Dept. of Econ., Cornell Univ., Ithaca, NY, USA
  • fYear
    2011
  • fDate
    22-25 Oct. 2011
  • Firstpage
    393
  • Lastpage
    402
  • Abstract
    The spread of a cascading failure through a network is an issue that comes up in many domains - in the contagious failures that spread among financial institutions during a financial crisis, through nodes of a power grid or communication network during a widespread outage, or through a human population during the outbreak of an epidemic disease. Here we study a natural model of threshold contagion: each node v is assigned a numerical threshold ℓ(v) drawn independently from an underlying distribution μ, and v will fail as soon as ℓ(v) of its neighbors fail. Despite the simplicity of the formulation, it has been very challenging to analyze the failure processes that arise from arbitrary threshold distributions; even qualitative questions concerning which graphs are the most resilient to cascading failures in these models have been difficult to resolve. Here we develop a set of new techniques for analyzing the failure probabilities of nodes in arbitrary graphs under this model, and we compare different graphs G according to their μ-risk, defined as the maximum failure probability of any node in G when thresholds are drawn from μ. We find that the space of threshold distributions has a surprisingly rich structure when we consider the risk that these thresholds induce on different graphs: small shifts in the distribution of the thresholds can favor graphs with a maximally clustered structure (i.e., cliques), those with a maximally branching structure (trees), or even intermediate hybrids.
  • Keywords
    finance; graph theory; probability; arbitrary graphs; cascading failure; financial institutions; maximum failure probability; numerical threshold; Analytical models; Educational institutions; Electric shock; Labeling; Power system faults; Power system protection; Resilience; cascading failures; contagion; financial contagion; networks; percolation; voter models;
  • fLanguage
    English
  • Publisher
    ieee
  • Conference_Titel
    Foundations of Computer Science (FOCS), 2011 IEEE 52nd Annual Symposium on
  • Conference_Location
    Palm Springs, CA
  • ISSN
    0272-5428
  • Print_ISBN
    978-1-4577-1843-4
  • Type

    conf

  • DOI
    10.1109/FOCS.2011.38
  • Filename
    6108200