A case study of the pyramid scheme in China based on communication network

Feng, Pihu; Lu, Xin; Gong, Zaiwu; Sun, Dong

doi:10.1016/j.physa.2020.125548

Cited by 7 publications

(3 citation statements)

References 37 publications

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“…The ERGM, which is developed based on relationships, provides an important research method for the expansion mechanism of cooperative networks [36,47,52]. The characteristics of the network structure, network members and the relationship pattern of social participation can be explored by logistic regression considering dependency relationships [37,53,54]. With the emergency supply support organization as the network node, the association between organizations through various forms and channels can be identified as a cooperative relationship, which forms the link and network structure among the nodes.…”

Section: Methodsmentioning

confidence: 99%

The Expansion Mechanism of the Cooperative Networks of Supply Support Organizations in a Public Health Emergency

2021

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The outbreak of COVID-19 has significantly restricted the productive capacity of society and resulted in a shortage of supplies to maintain survival. Lightening the burden not only depends on government agencies, but also needs extensive social organization participation. However, few studies focus on how to promote social cooperation to support the provision of emergency supplies. This study aimed to find out the theoretical mechanism to expand the cooperative networks of supply support organizations during the epidemic. Data from the emergency response to the COVID-19 pandemic in China were used. Three cooperative networks from a progressive perspective were constructed based on the cooperative relationships among organizations. The expansion mechanism was verified by the exponential random graph model. The results show that when the institutional network expands into an interactive network, the composition of organization types has changed, but the cooperative network’s efficiency does not improve much. The matching effect of the organizational type and the Matthew effect of nodes are both effective paths to promote cooperative network expansion, however, the structure effect shows that complex relationship structure is not a critical factor. Our findings highlight the importance of core organizations and the function of different types of organizations in building cooperative network as well as providing theoretical frameworks for policymakers to use in guiding and motivating social cooperation in emergency supplies.

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Section: Methodsmentioning

confidence: 99%

The Expansion Mechanism of the Cooperative Networks of Supply Support Organizations in a Public Health Emergency

2021

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“…In this work, we propose an agent model to simulate and research a kind of financial phenomenon with the characteristics of the pyramid schemes [25][26][27][28], which have organizers who induce people to participate in the schemes with high returns, and the participants also recruit the next generation of participants until the schemes can not continue. In the secondary market of a certain security, there is often a financial phenomenon with the characteristics of the pyramid schemes: the main funds with a large amount of money and securities may act as the organizers, who influence the price of the security through big orders to induce ordinary trend investors to follow the trend one after another, and profit through reverse operation finally.…”

Section: Introductionmentioning

confidence: 99%

Pyramid scheme in stock market: a kind of financial market simulation

Shi,

Li,

2021

Preprint

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Artificial stock market simulation based on agent is an important means to study financial market. Based on the assumption that the investors are composed of a main fund, small trend and contrarian investors characterized by four parameters, we simulate and research a kind of financial phenomenon with the characteristics of pyramid schemes. Our simulation results and theoretical analysis reveal the relationships between the rate of return of the main fund and the proportion of the trend investors in all small investors, the small investors' parameters of taking profit and stopping loss, the order size of the main fund and the strategies adopted by the main fund. Our work are helpful to explain the financial phenomenon with the characteristics of pyramid schemes in financial markets, design trading rules for regulators and develop trading strategies for investors.

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“…In this work, we propose an agent model to simulate and research a kind of financial phenomenon with the characteristics of the pyramid schemes, [25][26][27][28] which have organizers who induce people to participate in the schemes with high returns, and the participants also recruit the next-generation participants until the schemes can not continue. In the secondary market of a certain security, there is often a financial phenomenon with the characteristics of the pyramid schemes: the main funds with a large amount of money and securities may act as the organizers, who influence the price of the security through big orders to induce ordinary trend investors to follow the trend one after another, and profit through reverse operation finally.…”

Section: Introductionmentioning

confidence: 99%

Pyramid scheme in stock market: A kind of financial market simulation*

Shi¹,

Li²,

Du³

2021

Chinese Phys. B

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Artificial stock market simulation based on agent is an important means to study financial market. Based on the assumption that the investors are composed of a main fund, small trend and contrarian investors characterized by four parameters, we simulate and research a kind of financial phenomenon with the characteristics of pyramid schemes. Our simulation results and theoretical analysis reveal the relationships between the rate of return of the main fund and the proportion of the trend investors in all small investors, the small investors’ parameters of taking profit and stopping loss, the order size of the main fund and the strategies adopted by the main fund. Our work is helpful to explain the financial phenomenon with the characteristics of pyramid schemes in financial markets, design trading rules for regulators and develop trading strategies for investors.

show abstract

A case study of the pyramid scheme in China based on communication network

Cited by 7 publications

References 37 publications

The Expansion Mechanism of the Cooperative Networks of Supply Support Organizations in a Public Health Emergency

The Expansion Mechanism of the Cooperative Networks of Supply Support Organizations in a Public Health Emergency

Pyramid scheme in stock market: a kind of financial market simulation

Pyramid scheme in stock market: A kind of financial market simulation*

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