Identification of Critical Nodes and Links in Financial Networks with Intermediation and Electronic Transactions

Abstract

Abstract A network performance measure for the evaluation of financial networks with intermediation is proposed. The measure captures risk, transaction cost, price, transaction flow, revenue, and demand information in the context of the decisionmakers' behavior in multitiered financial networks that also allow for electronic transactions. The measure is then utilized to define the importance of a financial network component, that is, a node or a link, ...