Heterogeneity and Stability: Bolster the Strong, Not the Weak
研究了异质性脆弱性下自我实现的恐慌和系统性恐慌模型，发现系统性风险可能关键取决于传染链中强者的财务健康，因此强化强者比扶持弱者更能提升系统稳定性。
We first study a stylized model of self-fulfilling panic among agents with differing fragilities to strategic risk and show that depending on the severity of coordination problems, the panic trigger threshold can depend only on one type's fragility. We then present a model of systemic panic among financial institutions with heterogeneous fragilities to financial spillovers. Concerns about potential spillovers generate strategic interaction, triggering a pre-emption game in which one tries to exit the market before others to avoid spillovers. Although financial contagion originates in weaker institutions, systemic risk can critically depend on financial health of stronger in the contagion chain. In this case, bolstering the strong, rather than the weak, more effectively enhances systemic stability.