10 Search Results for "Bertschinger, Daniel"


Document
Computing Tarski Fixed Points in Financial Networks

Authors: Leander Besting, Martin Hoefer, and Lars Huth

Published in: LIPIcs, Volume 364, 43rd International Symposium on Theoretical Aspects of Computer Science (STACS 2026)


Abstract
Modern financial networks are highly connected and result in complex interdependencies of the involved institutions. In the prominent Eisenberg-Noe model [Eisenberg and Noe, 2001], a fundamental aspect is clearing - to determine the amount of assets available to each financial institution in the presence of potential defaults and bankruptcy. A clearing state represents a fixed point that satisfies a set of natural axioms. Existence can be established (even in broad generalizations of the model) using Tarski’s theorem. While a maximal fixed point can be computed in polynomial time, the complexity of computing other fixed points is open. In this paper, we provide an efficient algorithm to compute a minimal fixed point. Our algorithm applies in a broad generalization of the Eisenberg-Noe model with any monotone, piecewise-linear payment functions and default costs. We also study claims trading, a local network adjustment to improve clearing, when networks are evaluated with minimal clearing. We provide an efficient algorithm to decide existence of Pareto-improving trades and compute optimal ones if they exist.

Cite as

Leander Besting, Martin Hoefer, and Lars Huth. Computing Tarski Fixed Points in Financial Networks. In 43rd International Symposium on Theoretical Aspects of Computer Science (STACS 2026). Leibniz International Proceedings in Informatics (LIPIcs), Volume 364, pp. 14:1-14:18, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2026)


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@InProceedings{besting_et_al:LIPIcs.STACS.2026.14,
  author =	{Besting, Leander and Hoefer, Martin and Huth, Lars},
  title =	{{Computing Tarski Fixed Points in Financial Networks}},
  booktitle =	{43rd International Symposium on Theoretical Aspects of Computer Science (STACS 2026)},
  pages =	{14:1--14:18},
  series =	{Leibniz International Proceedings in Informatics (LIPIcs)},
  ISBN =	{978-3-95977-412-3},
  ISSN =	{1868-8969},
  year =	{2026},
  volume =	{364},
  editor =	{Mahajan, Meena and Manea, Florin and McIver, Annabelle and Thắng, Nguy\~{ê}n Kim},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/entities/document/10.4230/LIPIcs.STACS.2026.14},
  URN =		{urn:nbn:de:0030-drops-255038},
  doi =		{10.4230/LIPIcs.STACS.2026.14},
  annote =	{Keywords: Tarski Fixed Points, Financial Networks, Minimal Clearing, Claims Trade}
}
Document
A Universal Uniform Approximation Theorem for Neural Networks

Authors: Olivier Bournez, Johanne Cohen, and Adrian Wurm

Published in: LIPIcs, Volume 345, 50th International Symposium on Mathematical Foundations of Computer Science (MFCS 2025)


Abstract
We show the existence of a fixed recurrent network capable of approximating any computable function with arbitrary precision, provided that an encoding of the function is given in the initial input. While uniform approximation over a compact domain is a well-known property of neural networks, we go further by proving that our network ensures effective uniform approximation - simultaneously ensuring: - Uniform approximation in the sup-norm sense, guaranteeing precision across the compact domain {[0,1]^d}; - Uniformity in the sense of computability theory (also referred to as effectivity or universality), meaning the same network works for all computable functions. Our result is obtained constructively, using original arguments. Moreover, our construction bridges computation theory with neural network approximation, providing new insights into the fundamental connections between circuit complexity and function representation. Furthermore, this connection extends beyond computability to complexity theory. The obtained network is efficient: if a function is computable or approximable in polynomial time in the Turing machine model, then the network requires only a polynomial number of recurrences or iterations to achieve the same level of approximation, and conversely. Moreover, the recurrent network can be assumed to be very narrow, strengthening the link our results and existing models of very deep learning, where uniform approximation properties have already been established.

Cite as

Olivier Bournez, Johanne Cohen, and Adrian Wurm. A Universal Uniform Approximation Theorem for Neural Networks. In 50th International Symposium on Mathematical Foundations of Computer Science (MFCS 2025). Leibniz International Proceedings in Informatics (LIPIcs), Volume 345, pp. 29:1-29:20, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2025)


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@InProceedings{bournez_et_al:LIPIcs.MFCS.2025.29,
  author =	{Bournez, Olivier and Cohen, Johanne and Wurm, Adrian},
  title =	{{A Universal Uniform Approximation Theorem for Neural Networks}},
  booktitle =	{50th International Symposium on Mathematical Foundations of Computer Science (MFCS 2025)},
  pages =	{29:1--29:20},
  series =	{Leibniz International Proceedings in Informatics (LIPIcs)},
  ISBN =	{978-3-95977-388-1},
  ISSN =	{1868-8969},
  year =	{2025},
  volume =	{345},
  editor =	{Gawrychowski, Pawe{\l} and Mazowiecki, Filip and Skrzypczak, Micha{\l}},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/entities/document/10.4230/LIPIcs.MFCS.2025.29},
  URN =		{urn:nbn:de:0030-drops-241365},
  doi =		{10.4230/LIPIcs.MFCS.2025.29},
  annote =	{Keywords: Models of computation, Complexity theory, Formal neural networks}
}
Document
The Point-Boundary Art Gallery Problem Is ∃ℝ-Hard

Authors: Jack Stade

Published in: LIPIcs, Volume 332, 41st International Symposium on Computational Geometry (SoCG 2025)


Abstract
We resolve the complexity of the point-boundary variant of the art gallery problem, showing that it is ∃ℝ-complete, meaning that it is equivalent under polynomial time reductions to deciding whether a system of polynomial equations has a real solution. The art gallery problem asks whether there is a configuration of guards that together can see every point inside of an art gallery modeled by a simple polygon. The original version of this problem (which we call the point-point variant) was shown to be ∃ℝ-hard [Abrahamsen, Adamaszek, and Miltzow, JACM 2021], but the complexity of the variant where guards only need to guard the walls of the art gallery was left as an open problem. We show that this variant is also ∃ℝ-hard. Our techniques can also be used to greatly simplify the proof of ∃ℝ-hardness of the point-point art gallery problem. The gadgets in previous work could only be constructed by using a computer to find complicated rational coordinates with specific algebraic properties. All of our gadgets can be constructed by hand and can be verified with simple geometric arguments.

Cite as

Jack Stade. The Point-Boundary Art Gallery Problem Is ∃ℝ-Hard. In 41st International Symposium on Computational Geometry (SoCG 2025). Leibniz International Proceedings in Informatics (LIPIcs), Volume 332, pp. 74:1-74:23, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2025)


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@InProceedings{stade:LIPIcs.SoCG.2025.74,
  author =	{Stade, Jack},
  title =	{{The Point-Boundary Art Gallery Problem Is \exists\mathbb{R}-Hard}},
  booktitle =	{41st International Symposium on Computational Geometry (SoCG 2025)},
  pages =	{74:1--74:23},
  series =	{Leibniz International Proceedings in Informatics (LIPIcs)},
  ISBN =	{978-3-95977-370-6},
  ISSN =	{1868-8969},
  year =	{2025},
  volume =	{332},
  editor =	{Aichholzer, Oswin and Wang, Haitao},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/entities/document/10.4230/LIPIcs.SoCG.2025.74},
  URN =		{urn:nbn:de:0030-drops-232269},
  doi =		{10.4230/LIPIcs.SoCG.2025.74},
  annote =	{Keywords: Art Gallery Problem, Complexity, ETR, Polygon}
}
Document
Dynamic Debt Swapping in Financial Networks

Authors: Henri Froese, Martin Hoefer, and Lisa Wilhelmi

Published in: LIPIcs, Volume 330, 4th Symposium on Algorithmic Foundations of Dynamic Networks (SAND 2025)


Abstract
A debt swap is an elementary edge swap in a directed, weighted graph, where two edges with the same weight swap their targets. Debt swaps are a natural and appealing operation in financial networks, in which nodes are banks and edges represent debt contracts. They can improve the clearing payments and the stability of these networks. However, their algorithmic properties are not well-understood. We analyze the computational complexity of debt swapping. Our main interest lies in semi-positive swaps, in which no creditor strictly suffers and at least one strictly profits. These swaps lead to a Pareto-improvement in the entire network. We consider network optimization via sequences of v-improving debt swaps from which a given bank v strictly profits. For ranking-based clearing, we show that every sequence of semi-positive v-improving swaps has polynomial length. In contrast, for arbitrary v-improving swaps, the problem of reaching a network configuration that allows no further swaps is PLS-complete. We identify cases in which short sequences of semi-positive swaps exist even without the v-improving property.

Cite as

Henri Froese, Martin Hoefer, and Lisa Wilhelmi. Dynamic Debt Swapping in Financial Networks. In 4th Symposium on Algorithmic Foundations of Dynamic Networks (SAND 2025). Leibniz International Proceedings in Informatics (LIPIcs), Volume 330, pp. 2:1-2:16, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2025)


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@InProceedings{froese_et_al:LIPIcs.SAND.2025.2,
  author =	{Froese, Henri and Hoefer, Martin and Wilhelmi, Lisa},
  title =	{{Dynamic Debt Swapping in Financial Networks}},
  booktitle =	{4th Symposium on Algorithmic Foundations of Dynamic Networks (SAND 2025)},
  pages =	{2:1--2:16},
  series =	{Leibniz International Proceedings in Informatics (LIPIcs)},
  ISBN =	{978-3-95977-368-3},
  ISSN =	{1868-8969},
  year =	{2025},
  volume =	{330},
  editor =	{Meeks, Kitty and Scheideler, Christian},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/entities/document/10.4230/LIPIcs.SAND.2025.2},
  URN =		{urn:nbn:de:0030-drops-230550},
  doi =		{10.4230/LIPIcs.SAND.2025.2},
  annote =	{Keywords: Debt Swap, Financial Networks, Local Search}
}
Document
Unfairly Splitting Separable Necklaces

Authors: Patrick Schnider, Linus Stalder, and Simon Weber

Published in: LIPIcs, Volume 327, 42nd International Symposium on Theoretical Aspects of Computer Science (STACS 2025)


Abstract
The Necklace Splitting problem is a classical problem in combinatorics that has been intensively studied both from a combinatorial and a computational point of view. It is well-known that the Necklace Splitting problem reduces to the discrete Ham Sandwich problem. This reduction was crucial in the proof of PPA-completeness of the Ham Sandwich problem. Recently, Borzechowski, Schnider and Weber [ISAAC'23] introduced a variant of Necklace Splitting that similarly reduces to the α-Ham Sandwich problem, which lies in the complexity class UEOPL but is not known to be complete. To make this reduction work, the input necklace is guaranteed to be n-separable. They showed that these necklaces can be fairly split in polynomial time and thus this subproblem cannot be used to prove UEOPL-hardness for α-Ham Sandwich. We consider the more general unfair necklace splitting problem on n-separable necklaces, i.e., the problem of splitting these necklaces such that each thief gets a desired fraction of each type of jewels. This more general problem is the natural necklace-splitting-type version of α-Ham Sandwich, and its complexity status is one of the main open questions posed by Borzechowski, Schnider and Weber. We show that the unfair splitting problem is also polynomial-time solvable, and can thus also not be used to show UEOPL-hardness for α-Ham Sandwich.

Cite as

Patrick Schnider, Linus Stalder, and Simon Weber. Unfairly Splitting Separable Necklaces. In 42nd International Symposium on Theoretical Aspects of Computer Science (STACS 2025). Leibniz International Proceedings in Informatics (LIPIcs), Volume 327, pp. 71:1-71:19, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2025)


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@InProceedings{schnider_et_al:LIPIcs.STACS.2025.71,
  author =	{Schnider, Patrick and Stalder, Linus and Weber, Simon},
  title =	{{Unfairly Splitting Separable Necklaces}},
  booktitle =	{42nd International Symposium on Theoretical Aspects of Computer Science (STACS 2025)},
  pages =	{71:1--71:19},
  series =	{Leibniz International Proceedings in Informatics (LIPIcs)},
  ISBN =	{978-3-95977-365-2},
  ISSN =	{1868-8969},
  year =	{2025},
  volume =	{327},
  editor =	{Beyersdorff, Olaf and Pilipczuk, Micha{\l} and Pimentel, Elaine and Thắng, Nguy\~{ê}n Kim},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/entities/document/10.4230/LIPIcs.STACS.2025.71},
  URN =		{urn:nbn:de:0030-drops-228963},
  doi =		{10.4230/LIPIcs.STACS.2025.71},
  annote =	{Keywords: Necklace splitting, n-separability, well-separation, Ham Sandwich, alpha-Ham Sandwich, unfair splitting, fair division}
}
Document
Well-Separation and Hyperplane Transversals in High Dimensions

Authors: Helena Bergold, Daniel Bertschinger, Nicolas Grelier, Wolfgang Mulzer, and Patrick Schnider

Published in: LIPIcs, Volume 227, 18th Scandinavian Symposium and Workshops on Algorithm Theory (SWAT 2022)


Abstract
A family of k point sets in d dimensions is well-separated if the convex hulls of any two disjoint subfamilies can be separated by a hyperplane. Well-separation is a strong assumption that allows us to conclude that certain kinds of generalized ham-sandwich cuts for the point sets exist. But how hard is it to check if a given family of high-dimensional point sets has this property? Starting from this question, we study several algorithmic aspects of the existence of transversals and separations in high-dimensions. First, we give an explicit proof that k point sets are well-separated if and only if their convex hulls admit no (k - 2)-transversal, i.e., if there exists no (k - 2)-dimensional flat that intersects the convex hulls of all k sets. It follows that the task of checking well-separation lies in the complexity class coNP. Next, we show that it is NP-hard to decide whether there is a hyperplane-transversal (that is, a (d - 1)-transversal) of a family of d + 1 line segments in ℝ^d, where d is part of the input. As a consequence, it follows that the general problem of testing well-separation is coNP-complete. Furthermore, we show that finding a hyperplane that maximizes the number of intersected sets is NP-hard, but allows for an Ω((log k)/(k log log k))-approximation algorithm that is polynomial in d and k, when each set consists of a single point. When all point sets are finite, we show that checking whether there exists a (k - 2)-transversal is in fact strongly NP-complete. Finally, we take the viewpoint of parametrized complexity, using the dimension d as a parameter: given k convex sets in ℝ^d, checking whether there is a (k-2)-transversal is FPT with respect to d. On the other hand, for k ≥ d+1 finite point sets in ℝ^d, it turns out that checking whether there is a (d-1)-transversal is W[1]-hard with respect to d.

Cite as

Helena Bergold, Daniel Bertschinger, Nicolas Grelier, Wolfgang Mulzer, and Patrick Schnider. Well-Separation and Hyperplane Transversals in High Dimensions. In 18th Scandinavian Symposium and Workshops on Algorithm Theory (SWAT 2022). Leibniz International Proceedings in Informatics (LIPIcs), Volume 227, pp. 16:1-16:14, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2022)


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@InProceedings{bergold_et_al:LIPIcs.SWAT.2022.16,
  author =	{Bergold, Helena and Bertschinger, Daniel and Grelier, Nicolas and Mulzer, Wolfgang and Schnider, Patrick},
  title =	{{Well-Separation and Hyperplane Transversals in High Dimensions}},
  booktitle =	{18th Scandinavian Symposium and Workshops on Algorithm Theory (SWAT 2022)},
  pages =	{16:1--16:14},
  series =	{Leibniz International Proceedings in Informatics (LIPIcs)},
  ISBN =	{978-3-95977-236-5},
  ISSN =	{1868-8969},
  year =	{2022},
  volume =	{227},
  editor =	{Czumaj, Artur and Xin, Qin},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/entities/document/10.4230/LIPIcs.SWAT.2022.16},
  URN =		{urn:nbn:de:0030-drops-161766},
  doi =		{10.4230/LIPIcs.SWAT.2022.16},
  annote =	{Keywords: hyperplane transversal, high-dimension, hardness}
}
Document
Lions and Contamination: Monotone Clearings

Authors: Daniel Bertschinger, Meghana M. Reddy, and Enrico Mann

Published in: LIPIcs, Volume 227, 18th Scandinavian Symposium and Workshops on Algorithm Theory (SWAT 2022)


Abstract
We consider a special variant of a pursuit-evasion game called lions and contamination. In a graph whose vertices are originally contaminated, a set of lions walk around the graph and clear the contamination from every vertex they visit. The contamination, however, simultaneously spreads to any adjacent vertex not occupied by a lion. We study the relationship between different types of clearings of graphs, such as clearings which do not allow recontamination, clearings where at most one lion moves at each time step and clearings where lions are forbidden to be stacked on the same vertex. We answer several questions raised by Adams et al. [H. Adams et al., 2020].

Cite as

Daniel Bertschinger, Meghana M. Reddy, and Enrico Mann. Lions and Contamination: Monotone Clearings. In 18th Scandinavian Symposium and Workshops on Algorithm Theory (SWAT 2022). Leibniz International Proceedings in Informatics (LIPIcs), Volume 227, pp. 17:1-17:11, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2022)


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@InProceedings{bertschinger_et_al:LIPIcs.SWAT.2022.17,
  author =	{Bertschinger, Daniel and M. Reddy, Meghana and Mann, Enrico},
  title =	{{Lions and Contamination: Monotone Clearings}},
  booktitle =	{18th Scandinavian Symposium and Workshops on Algorithm Theory (SWAT 2022)},
  pages =	{17:1--17:11},
  series =	{Leibniz International Proceedings in Informatics (LIPIcs)},
  ISBN =	{978-3-95977-236-5},
  ISSN =	{1868-8969},
  year =	{2022},
  volume =	{227},
  editor =	{Czumaj, Artur and Xin, Qin},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/entities/document/10.4230/LIPIcs.SWAT.2022.17},
  URN =		{urn:nbn:de:0030-drops-161778},
  doi =		{10.4230/LIPIcs.SWAT.2022.17},
  annote =	{Keywords: Algorithmic Games, Pursuit-Evasion Games, Graph Contamination, Clearings}
}
Document
An Optimal Decentralized (Δ + 1)-Coloring Algorithm

Authors: Daniel Bertschinger, Johannes Lengler, Anders Martinsson, Robert Meier, Angelika Steger, Miloš Trujić, and Emo Welzl

Published in: LIPIcs, Volume 173, 28th Annual European Symposium on Algorithms (ESA 2020)


Abstract
Consider the following simple coloring algorithm for a graph on n vertices. Each vertex chooses a color from {1, ..., Δ(G) + 1} uniformly at random. While there exists a conflicted vertex choose one such vertex uniformly at random and recolor it with a randomly chosen color. This algorithm was introduced by Bhartia et al. [MOBIHOC'16] for channel selection in WIFI-networks. We show that this algorithm always converges to a proper coloring in expected O(n log Δ) steps, which is optimal and proves a conjecture of Chakrabarty and de Supinski [SOSA'20].

Cite as

Daniel Bertschinger, Johannes Lengler, Anders Martinsson, Robert Meier, Angelika Steger, Miloš Trujić, and Emo Welzl. An Optimal Decentralized (Δ + 1)-Coloring Algorithm. In 28th Annual European Symposium on Algorithms (ESA 2020). Leibniz International Proceedings in Informatics (LIPIcs), Volume 173, pp. 17:1-17:12, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2020)


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@InProceedings{bertschinger_et_al:LIPIcs.ESA.2020.17,
  author =	{Bertschinger, Daniel and Lengler, Johannes and Martinsson, Anders and Meier, Robert and Steger, Angelika and Truji\'{c}, Milo\v{s} and Welzl, Emo},
  title =	{{An Optimal Decentralized (\Delta + 1)-Coloring Algorithm}},
  booktitle =	{28th Annual European Symposium on Algorithms (ESA 2020)},
  pages =	{17:1--17:12},
  series =	{Leibniz International Proceedings in Informatics (LIPIcs)},
  ISBN =	{978-3-95977-162-7},
  ISSN =	{1868-8969},
  year =	{2020},
  volume =	{173},
  editor =	{Grandoni, Fabrizio and Herman, Grzegorz and Sanders, Peter},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/entities/document/10.4230/LIPIcs.ESA.2020.17},
  URN =		{urn:nbn:de:0030-drops-128837},
  doi =		{10.4230/LIPIcs.ESA.2020.17},
  annote =	{Keywords: Decentralized Algorithm, Distributed Computing, Graph Coloring, Randomized Algorithms}
}
Document
Connectivity of Triangulation Flip Graphs in the Plane (Part II: Bistellar Flips)

Authors: Uli Wagner and Emo Welzl

Published in: LIPIcs, Volume 164, 36th International Symposium on Computational Geometry (SoCG 2020)


Abstract
Given a finite point set P in general position in the plane, a full triangulation is a maximal straight-line embedded plane graph on P. A partial triangulation on P is a full triangulation of some subset P' of P containing all extreme points in P. A bistellar flip on a partial triangulation either flips an edge, removes a non-extreme point of degree 3, or adds a point in P ⧵ P' as vertex of degree 3. The bistellar flip graph has all partial triangulations as vertices, and a pair of partial triangulations is adjacent if they can be obtained from one another by a bistellar flip. The goal of this paper is to investigate the structure of this graph, with emphasis on its connectivity. For sets P of n points in general position, we show that the bistellar flip graph is (n-3)-connected, thereby answering, for sets in general position, an open questions raised in a book (by De Loera, Rambau, and Santos) and a survey (by Lee and Santos) on triangulations. This matches the situation for the subfamily of regular triangulations (i.e., partial triangulations obtained by lifting the points and projecting the lower convex hull), where (n-3)-connectivity has been known since the late 1980s through the secondary polytope (Gelfand, Kapranov, Zelevinsky) and Balinski’s Theorem. Our methods also yield the following results (see the full version [Wagner and Welzl, 2020]): (i) The bistellar flip graph can be covered by graphs of polytopes of dimension n-3 (products of secondary polytopes). (ii) A partial triangulation is regular, if it has distance n-3 in the Hasse diagram of the partial order of partial subdivisions from the trivial subdivision. (iii) All partial triangulations are regular iff the trivial subdivision has height n-3 in the partial order of partial subdivisions. (iv) There are arbitrarily large sets P with non-regular partial triangulations, while every proper subset has only regular triangulations, i.e., there are no small certificates for the existence of non-regular partial triangulations (answering a question by F. Santos in the unexpected direction).

Cite as

Uli Wagner and Emo Welzl. Connectivity of Triangulation Flip Graphs in the Plane (Part II: Bistellar Flips). In 36th International Symposium on Computational Geometry (SoCG 2020). Leibniz International Proceedings in Informatics (LIPIcs), Volume 164, pp. 67:1-67:16, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2020)


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@InProceedings{wagner_et_al:LIPIcs.SoCG.2020.67,
  author =	{Wagner, Uli and Welzl, Emo},
  title =	{{Connectivity of Triangulation Flip Graphs in the Plane (Part II: Bistellar Flips)}},
  booktitle =	{36th International Symposium on Computational Geometry (SoCG 2020)},
  pages =	{67:1--67:16},
  series =	{Leibniz International Proceedings in Informatics (LIPIcs)},
  ISBN =	{978-3-95977-143-6},
  ISSN =	{1868-8969},
  year =	{2020},
  volume =	{164},
  editor =	{Cabello, Sergio and Chen, Danny Z.},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/entities/document/10.4230/LIPIcs.SoCG.2020.67},
  URN =		{urn:nbn:de:0030-drops-122259},
  doi =		{10.4230/LIPIcs.SoCG.2020.67},
  annote =	{Keywords: triangulation, flip graph, graph connectivity, associahedron, subdivision, convex decomposition, flippable edge, flip complex, regular triangulation, bistellar flip graph, secondary polytope, polyhedral subdivision}
}
Document
Strategic Payments in Financial Networks

Authors: Nils Bertschinger, Martin Hoefer, and Daniel Schmand

Published in: LIPIcs, Volume 151, 11th Innovations in Theoretical Computer Science Conference (ITCS 2020)


Abstract
In their seminal work on systemic risk in financial markets, Eisenberg and Noe [Larry Eisenberg and Thomas Noe, 2001] proposed and studied a model with n firms embedded into a network of debt relations. We analyze this model from a game-theoretic point of view. Every firm is a rational agent in a directed graph that has an incentive to allocate payments in order to clear as much of its debt as possible. Each edge is weighted and describes a liability between the firms. We consider several variants of the game that differ in the permissible payment strategies. We study the existence and computational complexity of pure Nash and strong equilibria, and we provide bounds on the (strong) prices of anarchy and stability for a natural notion of social welfare. Our results highlight the power of financial regulation - if payments of insolvent firms can be centrally assigned, a socially optimal strong equilibrium can be found in polynomial time. In contrast, worst-case strong equilibria can be a factor of Ω(n) away from optimal, and, in general, computing a best response is an NP-hard problem. For less permissible sets of strategies, we show that pure equilibria might not exist, and deciding their existence as well as computing them if they exist constitute NP-hard problems.

Cite as

Nils Bertschinger, Martin Hoefer, and Daniel Schmand. Strategic Payments in Financial Networks. In 11th Innovations in Theoretical Computer Science Conference (ITCS 2020). Leibniz International Proceedings in Informatics (LIPIcs), Volume 151, pp. 46:1-46:16, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2020)


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@InProceedings{bertschinger_et_al:LIPIcs.ITCS.2020.46,
  author =	{Bertschinger, Nils and Hoefer, Martin and Schmand, Daniel},
  title =	{{Strategic Payments in Financial Networks}},
  booktitle =	{11th Innovations in Theoretical Computer Science Conference (ITCS 2020)},
  pages =	{46:1--46:16},
  series =	{Leibniz International Proceedings in Informatics (LIPIcs)},
  ISBN =	{978-3-95977-134-4},
  ISSN =	{1868-8969},
  year =	{2020},
  volume =	{151},
  editor =	{Vidick, Thomas},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/entities/document/10.4230/LIPIcs.ITCS.2020.46},
  URN =		{urn:nbn:de:0030-drops-117316},
  doi =		{10.4230/LIPIcs.ITCS.2020.46},
  annote =	{Keywords: Nash Equilibrium, Financial Network, Systemic Risk, Price of Anarchy, Equilibrium Computation}
}
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