Modeling Risk Contagion in the Venture Capital Market: A Multilayer Network Approach

Figure 9

Market robustness as the function of transmitting shock level in external and internal link coupling scenario with ER random network (solid lines) and scale-free network (dashed lines) for internal links. Both layers have and (a) and (b). We simulate different weight distributions: uniform (black), exponential (red), and truncated normal in the range (green). For the SF network, the minimum connectivity is , the maximum connectivity is the size of each layer and . The initial shock is on the venture capital market. The results were averaged over 100 realizations.

(a)

(b)