Partially Overlapping Ownership and Contagion in Financial Networks

Figure 9

Results for the Scale-Free Network Structure. Probability of a contagion ((a) and (b)) and average extent of contagion ((c) and (d)) for a scale-free network with common and partially overlapping ownership assets and direct exposures (black solid circles), common asset and direct exposures only (red empty circles), and direct exposures only (blue solid triangles), conditioned on a random core bank failing ((a) and (c)) and conditioned on a periphery bank failing ((b) and (d)). Contagion extent shown only when average contagion frequency is greater than 1%.

(a) Contagion probability (core node)

(b) Contagion probability (periphery node)

(c) Contagion extent (core node)

(d) Contagion extent (periphery node)