Dynamic communities in multichannel data: An application to the foreign exchange market during the 2007--2008 credit crisis

We study the cluster dynamics of multichannel (multivariate) time series by representing their correlations as time-dependent networks and investigating the evolution of network communities. We employ a node-centric approach that allows us to track the effects of the community evolution on the functional roles of individual nodes without having to track entire communities. As an example, we consider a foreign exchange market network in which each node represents an exchange rate and each edge represents a time-dependent correlation between the rates. We study the period 2005-2008, which includes the recent credit and liquidity crisis. Using dynamical community detection, we find that exchange rates that are strongly attached to their community are persistently grouped with the same set of rates, whereas exchange rates that are important for the transfer of information tend to be positioned on the edges of communities. Our analysis successfully uncovers major trading changes that occurred in the market during the credit crisis.Comment: 8 pages, 6 figures, accepted for publication in Chao

The evolution of P2P networks for file exchange: the interaction between social controversy and technical change

Since the irruption of Napster in 1999, Peer-to-Peer computer networks for file exchange have been at the heart of a heated debate that has eventually evolved into a wide social controversy across the world, involving legal, economical, and even political issues. This essay analyzes the effects of this controversy on the technical innovations that have shaped the evolution of those systems. It argues that the usual image of a single two-sided conflict does not account for most of the technical changes involved. P2P entrepreneurs and creators show a wide range of motivations and business strategies -if any- and users are not a monolithic group with a common set of goals and values. As a result, the actual historical evolution of those networks does not follow a simple linear path but a more complex and multidirectional development

Collisions of strings with Y junctions

We study the dynamics of Nambu--Goto strings with junctions at which three strings meet. In particular, we exhibit one simple exact solution and examine the process of intercommuting of two straight strings, in which they exchange partners but become joined by a third string. We show that there are important kinematical constraints on this process. The exchange cannot occur if the strings meet with very large relative velocity. This may have important implications for the evolution of cosmic superstring networks and non-abelian string networks.Comment: 4 pages, 1 figure, uses revtex 4. Clarifying comments added to correct a conceptual error, reference updated. Version accepted by Phys Rev Letters, with additional references and minor change

Exchanges in complex networks: income and wealth distributions

We investigate the wealth evolution in a system of agents that exchange wealth through a disordered network in presence of an additive stochastic Gaussian noise. We show that the resulting wealth distribution is shaped by the degree distribution of the underlying network and in particular we verify that scale free networks generate distributions with power-law tails in the high-income region. Numerical simulations of wealth exchanges performed on two different kind of networks show the inner relation between the wealth distribution and the network properties and confirm the agreement with a self-consistent solution. We show that empirical data for the income distribution in Australia are qualitatively well described by our theoretical predictions.Comment: 8 pages, 11 figure

The changing federated relationship between local and regional cooperatives

The evolution of the federated relationship between local and regional cooperatives is examined from the perspective of local cooperatives’ need for commodity-based farm supplies and regional cooperatives’ identity as food companies. Because locals want many competing bids for the supplies they purchase, they resist a strong and close affiliation with regional cooperatives, which then find themselves with excess capacity. Regionals have responded by instituting tighter bonds with selected local cooperatives operating as "internal supply networks," in exchange for certain benefits. This adaptation reduces the impact of divergent goals among regionals and locals within the federated system.Cooperatives, federation, networks, competition, regionalization., Agribusiness,

Making new connections towards cooperation in the prisoner's dilemma game

Evolution of cooperation in the prisoner's dilemma game is studied where initially all players are linked via a regular graph, having four neighbors each. Simultaneously with the strategy evolution, players are allowed to make new connections and thus permanently extend their neighborhoods, provided they have been successful in passing their strategy to the opponents. We show that this simple coevolutionary rule shifts the survival barrier of cooperators towards high temptations to defect and results in highly heterogeneous interaction networks with an exponential fit best characterizing their degree distributions. In particular, there exist an optimal maximal degree for the promotion of cooperation, warranting the best exchange of information between influential players.Comment: 6 two-column pages, 7 figures; accepted for publication in Europhysics Letter