The impact of risk sharing on risk propagation in multiplex networks: A dynamic simulation on industrial symbiosis

Abstract

The fluctuation of resource supply and demand among symbiotic members may bring great risks to an industrial symbiosis network (ISN). To address this, uninfected enterprises can provide risk sharing assistance to infected enterprises, helping them mitigating risks. This study aims to explore the impact of risk sharing on risk propagation in multiplex networks. We propose a mechanism for risk sharing and risk propagation, employing the Microscopic Markov Chain Approach (MMCA) to investigate the evolution process of risk propagation, while examing the influence of related factors through numerical simulation. Results show that risk sharing behavior facilitates risk information propagation, and promotes the recovery of infected nodes. However, higher risk aversion probability negatively affect risk mitigation under SP strategy or DP strategy, while it has the opposite effect under RS strategy. Furthermore, increasing risk sharing probability can improve the risk propagation threshold, which is more significant under SP strategy and DP strategy.