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FuturICT: Complexity aided design -A. Carbone, M. Ajmone-Marsan, K. W. Axhausen, M. Batty, M. Masera, E. Rome

FuturICT: Complexity aided design -A. Carbone, M. Ajmone-Marsan, K. W. Axhausen, M. Batty, M. Masera, E. Rome | FuturICT Journal Publications | Scoop.it

A. Carbone, M. Ajmone-Marsan, K. W. Axhausen, M. Batty, M. Masera, E. Rome

“In the next century, planet earth will don an electronic skin. It will use the Internet as a scaffold to support and transmit its sensations. This skin is already being stitched together. It consists of millions of embedded electronic measuring devices: thermostats, pressure gauges, pollution detectors, cameras, microphones, glucose sensors, EKGs, electroencephalographs. These will probe and monitor cities and endangered species, the atmosphere, our ships, highways and fleets of trucks, our conversations, our bodies–even our dreams ....What will the earth’s new skin permit us to feel? How will we use its surges of sensation? For several years–maybe for a decade–there will be no central nervous system to manage this vast signaling network. Certainly there will be no central intelligence...some qualities of self-awareness will emerge once the Net is sensually enhanced. Sensuality is only one force pushing the Net toward intelligence”. These statements are quoted by an interview by Cherry Murray, Dean of the Harvard School of Engineering and Applied Sciences and Professor of Physics. It is interesting to outline the timeliness and highly predicting power of these statements. In particular, we would like to point to the relevance of the question “What will the earth’s new skin permit us to feel?” to the work we are going to discuss in this paper. There are many additional compelling questions, as for example: “How can the electronic earth’s skin be made more resilient?”; “How can the earth’s electronic skin be improved to better satisfy the need of our society?”;“What can the science of complex systems contribute to this endeavour?”

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JOURNAL: THE EUROPEAN PHYSICAL JOURNAL SPECIAL TOPICS Vol. 214 (November II 2012)"Participatory Science and Computing for Our Complex World".

http://epjst.epj.org/index.php?option=com_toc&url=/articles/epjst/abs/2012/14/contents/contents.html

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Bankruptcy cascades in interbank markets: Gabriele Tedeschi, Amin Mazloumian, Mauro Gallegati, Dirk Helbing

Bankruptcy cascades in interbank markets: Gabriele Tedeschi, Amin Mazloumian, Mauro Gallegati, Dirk Helbing | FuturICT Journal Publications | Scoop.it

We study a credit network and, in particular, an interbank system with an agent-based model. To understand the relationship between business cycles and cascades of bankruptcies, we model a three-sector economy with goods, credit and interbank market. In the interbank market, the participating banks share the risk of bad debits, which may potentially spread a bank’s liquidity problems through the network of banks. Our agent-based model sheds light on the correlation between bankruptcy cascades and the endogenous economic cycle of booms and recessions. It also demonstrates the serious trade-off between, on the one hand, reducing risks of individual banks by sharing them and, on the other hand, creating systemic risks through credit-related interlinkages of banks. As a result of our study, the dynamics underlying the meltdown of financial markets in 2008 becomes much better understandable.

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