From Ecology to Finance (and Back?): Recent Advancements in the Analysis of Bipartite Networks

Upon a matrix representation of a binary bipartite network, via the permutation invariance, a coupling geometry is computed to approximate the minimum energy macrostate of a network's system. Such a macrostate is supposed to constitute the intrinsic structures of the system, so that the coupling geometry should be taken as information contents, or even the nonparametric minimum sufficient statistics of the network data. Then pertinent null and alternative hypotheses, such as ...

In recent years, methods from network science are gaining rapidly interest in economics and finance. A reason for this is that in a globalized world the interconnectedness among economic and financial entities are crucial to understand and networks provide a natural framework for representing and studying such systems. In this paper, we are surveying the use of networks and network-based methods for studying economy related questions. We start with a brief overview of graph t...

Nestedness is a common property of communication, finance, trade, and ecological networks. In networks with high levels of nestedness, the link positions of low-degree nodes (those with few links) form nested subsets of the link positions of high-degree nodes (those with many links), leading to matrix representations with characteristic upper-triangular or staircase patterns. Recent theoretical work has connected nestedness to the functionality of complex systems and has sugg...

Within network analysis, the analytical maximum entropy framework has been very successful for different tasks as network reconstruction and filtering. In a recent paper, the same framework was used for link-prediction for monopartite networks: link probabilities for all unobserved links in a graph are provided and the most probable links are selected. Here we propose the extension of such an approach to bipartite graphs. We test our method on two real world networks with dif...

The concept of nestedness, in particular for ecological and economical networks, has been introduced as a structural characteristic of real interacting systems. We suggest that the nestedness is in fact another way to express a mesoscale network property called the core-periphery structure. With real ecological mutualistic networks and synthetic model networks, we reveal the strong correlation between the nestedness and core-periphery-ness (likeness to the core-periphery stru...

Bipartite graphs have received some attention in the study of social networks and of biological mutualistic systems. A generalization of a previous model is presented, that evolves the topology of the graph in order to optimally account for a given Contact Preference Rule between the two guilds of the network. As a result, social and biological graphs are classified as belonging to two clearly different classes. Projected graphs, linking the agents of only one guild, are obta...

In the last 15 years, statistical physics has been a very successful framework to model complex networks. On the theoretical side, this approach has brought novel insights into a variety of physical phenomena, such as self-organisation, scale invariance, emergence of mixed distributions and ensemble non-equivalence, that display unconventional features on heterogeneous networks. At the same time, thanks to their deep connection with information theory, statistical physics and...

The field of Financial Networks is a paramount example of the novel applications of Statistical Physics that have made possible by the present data revolution. As the total value of the global financial market has vastly outgrown the value of the real economy, financial institutions on this planet have created a web of interactions whose size and topology calls for a quantitative analysis by means of Complex Networks. Financial Networks are not only a playground for the use o...

Nestedness characterizes the linkage pattern of networked systems, indicating the likelihood that a node is linked to the nodes linked to the nodes with larger degrees than it. Networks of mutualistic relationship between distinct groups of species in ecological communities exhibit such nestedness, which is known to support the network robustness. Despite such importance, quantitative characteristics of nestedness is little understood. Here we take graph-theoretic approach to...

A key element to understand complex systems is the relationship between the spatial scale of investigation and the structure of the interrelation among its elements. When it comes to economic systems, it is now well-known that the country-product bipartite network exhibits a nested structure, which is the foundation of different algorithms that have been used to scientifically investigate countries' development and forecast national economic growth. Changing the subject from ...