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Decision variables | Explanation |
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εtki, k ∈ {, s} | Effort made by entrepreneur ei to maintain his social network at period t |
λi | Proportion of cash invested in venture projects by corporation ci |
D | Influence radius of venture projects |
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Control variables |
R | Risk-free interest rate |
A | Parameter of entrepreneurs’ cost function |
B | Parameter for entrepreneurs seeking for help when financial accident occurred |
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Statistical variables | |
Wti | Capital possessed by corporation pi after period t |
rti | Realized return of venture project pi after period t |
Δti | Decision bias of entrepreneur ei at period t |
Lti | Total amount funded to corporation ci at his financial accident period t |
χT | Survival rate of corporations that measures system risk during time interval [0, T] |
ϕTi | Probability of expected loss that measures individual risk of ci during time interval [0, T] |
ρTi | First time corporation ci suffers financial accident during time interval [0, T] |
γtki, k ∈ {, s} | Degree of centrality of corporation ci in social networks at period t |
φTki, k ∈ {, s} | Embeddedness of corporation ci in his social networks during time interval [0, T] |
, k∈{, s} | Spillover effect of social networks of corporation ci during time interval [0, T] |
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Functions |
d(ci,pj) | Distance of corporation ci and venture project pj |
Kti(εtij), i ∈ {, s} | Tightness of social network at period t. The type of network is represented by superscript |
C(εtwi, εtsi) | Cost for entrepreneurs to maintain their social networks |
π(ci, t) | Expect return of investment of corporation ci at period t |
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Sets |
| Set of entrepreneurs |
| Set of corporations |
| Set of venture projects |
Cti | Set of venture projects in which corporation ci invests at period t |
Hti | Set of venture projects that can be directly accessed by corporation ci at period t |
Ati | Set of potential investment opportunities of corporation ci at period t |
Ltki, k∈{, s} | Set of entrepreneurs with whom ei connects in weak (strong) network at period t |
Jti | Set of projects which is invested by ci and realized return is lower than r at period t |
Bti | Negative list of venture projects for entrepreneur ei after period t |
Dti | Set of entrepreneurs who may fund corporation ci in financial accident at period t |
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Other notations |
ei, i∈{1, 2, …, N} | Specific entrepreneur whose identity is represented by subscript |
ci, i∈{1, 2, …, N} | Specific corporation whose identity is represented by subscript |
pi, i∈{1, 2, …, m} | Specific venture project whose identity is represented by subscript |
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