Agent-Based Models, Network Models, and Systemic Risk
Agent-based models, network models, and systemic risk belong together because modern crises often emerge from interaction, interdependence, adaptation, and contagion rather than from one isolated failure. This article explains how heterogeneous agents, network topology, feedback loops, cascading failure, behavioral amplification, infrastructure dependencies, financial contagion, cyber common-mode failure, supply-chain fragility, and public-health dynamics shape systemic risk. It shows why aggregate models can miss hidden fragility and why agent-based and network approaches help analysts examine how local behavior becomes systemwide disruption. The article also explores resilience interventions such as redundancy, buffers, modularity, diversity, governance, stress testing, and model validation, arguing that systemic resilience requires understanding how connected systems behave under stress.









