Role of Recovery in Evolving Protection against Systemic Risk: A Mechanical Perspective in Network-Agent Dynamics

Figure 20

Stationarity in time series with the random regular graph (nodes = 10  10, connection d = 9, time steps = 1,000). The set on the left-hand side shows the results controlled by the protection maximum, and the set on the right-hand side shows the results with a recovery time delay (dots = averaged values; dashed lines = variation). The upper plot shows the failure and capital combined (vertical axis = value corresponding to the time step [horizontal axis]). The plot in the middle shows failure (red) and capital (blue) (vertical axis = value corresponding to the time step [horizontal axis]). The inset plot shows the trend of the two strategies ( = red;  = blue)] (see Appendixes 4 and 5 for the results of the entire simulation). The lower plot shows the averaged outcomes (vertical axis) for capital (blues) and failure (reds), according to the recovery time delay (rec_time[+1]) and protection maximum [pp_max(+0.1)] (see legend). The background contour shows the dominance between the outcomes, and all the dashed lines denote the variability.