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Diffusion in dynamic networks with time-varying inputs to allocate responsibility

Rosa van den Ende and Dylan Laplace Mermoud

Papers from arXiv.org

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 method to allocate responsibility in real-world networks.

Date: 2023-01, Revised 2025-09
New Economics Papers: this item is included in nep-agr, nep-env and nep-gth
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