Optimal Payments to Connected Depositors in Turbulent Times: A Markov Chain Approach

<div>The dependence of optimal offers <svg height="16.0451pt" id="M218" style="vertical-align:-3.908299pt" version="1.1" viewbox="-0.0498162 -12.1368 18.9716 16.0451" width="18.9716pt" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink"><g transform="matrix(.013,0,0,-0.013,0,0)"><path d="M445 282C445 390 384 448 297 448C266 448 231 437 189 418C96 376 23 279 23 151C23 65 66 -12 169 -12C233 -12 294 18 337 53C411 113 445 201 445 282ZM355 280C355 161 302 62 243 36C231 31 219 30 207 30C147 30 111 78 111 154C111 302 180 380 220 399C231 404 246 407 264 407C311 407 355 367 355 280Z" id="g113-112"></path></g><g transform="matrix(.0091,0,0,-0.0091,6.084,-6.671)"><path d="M262 451C169 451 38 375 38 210C38 98 121 -12 261 -12C360 -12 481 64 481 227C481 351 386 451 262 451ZM249 414C337 414 385 320 385 204C385 70 333 25 272 25C189 25 134 117 134 241C134 355 189 414 249 414Z" id="g58-109"></path></g><g transform="matrix(.0091,0,0,-0.0091,10.707,-6.671)"><path d="M173 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xmlns:xlink="http://www.w3.org/1999/xlink"><g transform="matrix(.013,0,0,-0.013,0,0)"><path d="M570 304C570 398 525 448 414 448C385 448 343 445 312 434L329 511L321 518C297 504 262 482 244 460L233 411C195 397 159 381 128 358L135 332C160 347 189 360 224 373L111 -147C97 -210 84 -218 17 -231L13 -257L254 -247L259 -218L233 -216C183 -212 177 -202 189 -142L218 -1C238 -10 266 -12 283 -12C351 3 429 48 483 105C543 168 570 242 570 304ZM482 289C482 161 380 33 304 33C278 33 248 51 233 69L303 396C326 400 352 403 369 403C428 403 482 380 482 289Z" id="g113-113"></path></g><g transform="matrix(.0091,0,0,-0.0091,7.384,3.132)"><path d="M357 391C357 416 325 451 270 451C241 451 179 431 146 400C109 365 97 334 97 307C97 248 143 213 196 180C250 146 261 123 261 101C261 75 237 40 190 40C153 40 110 72 86 109C81 116 68 119 55 112C37 102 24 87 24 66C24 30 85 -12 137 -12C229 -12 331 62 331 140C331 189 304 218 236 260C197 284 164 309 164 346C164 381 194 400 220 400C259 400 282 380 304 350C310 342 321 339 330 344C347 353 357 372 357 391Z" id="g50-116"></path></g></svg> at various levels of the parameter <span class="nowrap"><svg height="9.49473pt" id="M221" style="vertical-align:-0.2063999pt" version="1.1" viewbox="-0.0498162 -9.28833 6.84582 9.49473" width="6.84582pt" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink"><g transform="matrix(.013,0,0,-0.013,0,0)"><path d="M494 514C482 587 419 712 303 712C238 712 174 667 174 603C174 561 205 514 249 449C219 438 187 422 162 407C93 366 23 283 23 177C23 69 87 -12 190 -12C244 -12 288 5 328 33C406 87 444 170 444 249C444 329 404 391 331 475C265 550 222 605 222 627C222 647 238 657 267 657C355 657 421 585 484 499L494 514ZM359 234C359 143 319 30 219 30C172 30 114 75 114 178C114 275 163 343 195 378C212 397 241 415 269 425C305 382 359 313 359 234Z" id="g113-226"></path></g></svg>,</span> describing the strength of the connections.</div>

Complexity

fig5

Figure 5

Figure 5: Optimal Payments to Connected Depositors in Turbulent Times: A Markov Chain Approach 