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Diffusion in dynamic networks with continuous inputs to allocate responsibility

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Abstract

Responsibility in complex networks extends beyond direct actions: players should also bear responsibility for the indirect effects within their supply chains or network. We introduce a novel framework to allocate responsibility for indirect environmental, social, and economic impacts across a dynamic network. Unlike static approaches, our framework accounts for the evolving structure of supply chains, financial systems, and other interconnected systems, where relationships change over time. We use the time-dependent Laplacian matrix to capture how responsibility propagates through the network, revealing a diffusion process that aligns with key axioms of fairness: linearity, efficiency, symmetry, and the independent player property. We show that approximating the responsibility measure preserves these properties, supporting the use of our framework as a rigorous and practical method to allocate responsibility in real-world networks

Suggested Citation

  • Rosa Van Den Ende & Dylan Laplace Mermoud, 2025. "Diffusion in dynamic networks with continuous inputs to allocate responsibility," Documents de travail du Centre d'Economie de la Sorbonne 25008, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  • Handle: RePEc:mse:cesdoc:25008
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    File URL: http://mse.univ-paris1.fr/pub/mse/CES2025/25008.pdf
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    File URL: https://shs.hal.science/halshs-05046082
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    More about this item

    Keywords

    Dynamic networks; Laplacian matrix; allocation of responsibility; diffusion; climate policy;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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