Liquidity Hoarding in Financial Networks: The Role of Structural Uncertainty

Figure 9

Manipulation of confidence change over time: drops 20, 30, or 40%, with the slope of decline determined by the parameter of the exponential function ; the higher , the steeper the slope of decline. Time step refers to discrete simulation time where each step iterates a defined set of actions (see Appendix B). Note: the observed time horizon is extended from 100 to 150 time steps, as additional time steps were needed for the system to reach the steady state when the slope of decline was low ().