Liquidity Hoarding in Financial Networks: The Role of Structural Uncertainty

Figure 16

Standard deviations of confidence across all scenarios and three shock treatments: to a small bank, a large bank, and multiple banks. CI = Complete information; LI = local information; NI = noisy information; DI = delayed information; LI1 and LI2 = scenarios in which a bank has access only to information at distance 1 and 2, respectively. NI5 and NI30 = scenarios in which noise parameter v is 5% and 30%, respectively. The delay scenarios are defined in Table 1.