4 papers
Corporate Culture and Organizational Fragility
Matthew Elliott, Benjamin Golub, Matthieu V. Leduc
Complex organizations accomplish tasks through many steps of collaboration among workers. Corporate culture supports collaborations by establishing norms and reducing misunderstand…
Supply Network Formation and Fragility
Matthew Elliott, Benjamin Golub, Matthew V. Leduc
We model the production of complex goods in a large supply network. Each firm sources several essential inputs through relationships with other firms. Individual supply relationshi…
Incentivizing Resilience in Financial Networks
Matt V. Leduc, Stefan Thurner
When banks extend loans to each other, they generate a negative externality in the form of systemic risk. They create a network of interbank exposures by which they expose other ba…
Systemic Risk Management in Financial Networks with Credit Default Swaps
Matt V. Leduc, Sebastian Poledna, Stefan Thurner
We study insolvency cascades in an interbank system when banks are allowed to insure their loans with credit default swaps (CDS) sold by other banks. We show that, by properly shif…