Analysis of Network Topology Using the Threshold-Minimum Dominating Set

21 Pages Posted: 12 May 2014

See all articles by Theophilos Papadimitriou

Theophilos Papadimitriou

Department of Economics, Democritus University of Thrace

Periklis Gogas

Democritus University of Thrace - Department of Economics

Georgios Sarantitis

Democritus University of Thrace - Department of Economics

Maria Matthaiou

Democritus University of Thrace - Department of Economics

Date Written: May 10, 2014

Abstract

Graph theory is an essential tool for the modeling of complex networks. It can be used for network control and monitoring. The latter is usually performed using a representative subset of the whole network identified with the Minimum Spanning Tree (MST) methodology. The MST, however, bears intrinsic limitations since it may lead to the formation of an inappropriate set of nodes that may withhold crucial information. In this study we unveil these limitations and propose the use of a novel methodology, the Threshold-Minimum Dominating Set (T-MDS), to derive a minimum subset of nodes that can adequately and efficiently describe the collective behavior of an entire network. We present two diverse empirical examples regarding a) a banking network of 200 U.S. banks and b) the GDP growth rates based network of 22 European countries to illustrate the advantages of the T-MDS methodology in the analysis of complex economic systems.

Keywords: Networks, Graph Theory, Optimization, Threshold-Minimum Dominating Set, Minimum Spanning Tree, Bank Supervision

Suggested Citation

Papadimitriou, Theophilos and Gogas, Periklis and Sarantitis, Georgios and Matthaiou, Maria, Analysis of Network Topology Using the Threshold-Minimum Dominating Set (May 10, 2014). Available at SSRN: https://ssrn.com/abstract=2435488 or http://dx.doi.org/10.2139/ssrn.2435488

Theophilos Papadimitriou (Contact Author)

Department of Economics, Democritus University of Thrace ( email )

University Campus
Komotini, 69100
Greece

HOME PAGE: http://econ.duth.gr/author/papadimi/

Periklis Gogas

Democritus University of Thrace - Department of Economics ( email )

Komotini, 69100
Greece

HOME PAGE: http://www.econ.duth.gr/personel/dep/gkogkas/index.en.shtml

Georgios Sarantitis

Democritus University of Thrace - Department of Economics ( email )

Komotini
Greece

Maria Matthaiou

Democritus University of Thrace - Department of Economics ( email )

Komotini
Greece

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