Cautious Farsighted Stability in Network Formation Games with Streams of Payoffs
We propose a new notion of farsighted pairwise stability for dynamic network formation
which includes two notable features: consideration of intermediate payoffs and cautiousness.
This differs from existing concepts which typically consider either only immediate or final
payoffs, and which often require that players are optimistic in any environment without full
communication and commitment. For arbitrary (and possibly heterogeneous) preferences over
the process of network formation, a non-empty cautious path stable (CPS) set of networks
always exists. Furthermore, some general relationships exist between CPS and other farsighted
We propose a model that evaluates how much a network has changed over time in terms of its structure and a set of central elements. The difference of structure is evaluated in terms of node-to-node influence using known nodes correspondence models. To analyze the changes in nodes centralities we adapt an idea of interval orders to the network theory. Our approach can be used to investigate dynamic changes in temporal networks and to identify suspicious or abnormal effects in terms of the topology and its critical members. We can also transform the stability measure to the similarity measure in order to cluster the network in some homogeneous periods. To test our model, we consider the international migration network from 1970 to 2015 and attempt to analyze main changes in migration patterns.
The paper examines the structure, governance, and balance sheets of state-controlled banks in Russia, which accounted for over 55 percent of the total assets in the country's banking system in early 2012. The author offers a credible estimate of the size of the country's state banking sector by including banks that are indirectly owned by public organizations. Contrary to some predictions based on the theoretical literature on economic transition, he explains the relatively high profitability and efficiency of Russian state-controlled banks by pointing to their competitive position in such functions as acquisition and disposal of assets on behalf of the government. Also suggested in the paper is a different way of looking at market concentration in Russia (by consolidating the market shares of core state-controlled banks), which produces a picture of a more concentrated market than officially reported. Lastly, one of the author's interesting conclusions is that China provides a better benchmark than the formerly centrally planned economies of Central and Eastern Europe by which to assess the viability of state ownership of banks in Russia and to evaluate the country's banking sector.
The paper examines the principles for the supervision of financial conglomerates proposed by BCBS in the consultative document published in December 2011. Moreover, the article proposes a number of suggestions worked out by the authors within the HSE research team.