The Network Model of Investment and Its Stability in Stock Market
Yuetang Bian, HE Jian-min, Yaming Zhuang · Systems Engineering · 2011
Let investors and stocks be the networks nodes,the ownership between be the connection,a generalized network model and its extension are introduced based on the intrinsic characteristics of the investors' capacity,the stocks' price earning correlation and the methods of NEMs.Through the simulation analysis of the network model,not only the statistical characteristics of degree distribution,clustering coefficient,average path length and so on are described,but also the robustness of the network is studied.The feature of small world and scale free is obviously shown in both the networks.Particularly,in the extension network,there comes the two-direction power law degree distribution,relatively stable clustering coefficient which is not dependent on the network scale,and growing average path length with linear slope as the network size increasing logarithmically.Then,the investment network has a high robustness for random attacks,while it's lower under the selective attack.