Complex Decision-Making in Economy and Finance

19Technological, Monetary and Financial Crashes

19.1. Yet another view to complexity

The world, as a living organism, is submitted to an evolution that is not mandatorily linked with a pre-defined strategy. Here, we will only recall two main interconnection architectures used in interconnected networks: the hypercube and feedback loops. Both provide advantages which have been described elsewhere [MAS 17b]:

1. 1) let us denote by “n” the connectivity (number of edges issued from a vertex in a network). A hypercube is an n-dimensional analogue of a square (n = 2), a cube (n = 3), a hypergraph (n = 4), etc. It is a closed, compact, convex geometrical structure, with each 1-skeleton (node) consisting of groups of opposite parallel line arrows aligned in each of the space’s dimensions, orthogonal to each other, and of the same length. The unit hypercube’s longest diagonal in n dimension is equal to , which is of key importance to optimize the global connectivity, in interconnected systems (communication);

   

   Figure 19.1. Hypercube whose corners (or vertices) are the 2n points in Rn

2. 2) feedback loops: as shown in Figure 19.2.

Figure 19.2. Feedback loops (source: http://www.businessdictionary.com/definition/feedback-loop.html ...