2002
DOI: 10.1103/physrevlett.89.028301
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Optimal Design, Robustness, and Risk Aversion

Abstract: Highly optimized tolerance is a model of optimization in engineered systems, which gives rise to power-law distributions of failure events in such systems. The archetypal example is the highly optimized forest fire model. Here we give an analytic solution for this model which explains the origin of the power laws. We also generalize the model to incorporate risk aversion, which results in truncation of the tails of the power law so that the probability of disastrously large events is dramatically lowered, givi… Show more

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Cited by 64 publications
(47 citation statements)
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“…Typically, systemic failures occur due to fragility in complex systems [11][12][13][14]. Such complex systems are challenging because they are highly interconnected among a large number of subsystems and components.…”
Section: Introductionmentioning
confidence: 99%
“…Typically, systemic failures occur due to fragility in complex systems [11][12][13][14]. Such complex systems are challenging because they are highly interconnected among a large number of subsystems and components.…”
Section: Introductionmentioning
confidence: 99%
“…Robustness has been defined in the past in very different ways, and mostly informal [1,5,9,10,16,11]. In [11], it is defined as the "system's strength in constitution and resistibility to any sort of external or internal changes, perturbations, fluctuations, and noise".…”
Section: Introductionmentioning
confidence: 99%
“…Among the important features of SOC are (a) self-similarity and homogeneity of the landscape, (b) fractal structure of cascades, (c) a small power-law exponent (i.e., heavier tails), and (d) low density and low yield (e.g., in the context of the forest fire model, described below). HOT [26,27,28,85], in contrast, models complex systems that emerge as a result of optimization in the face of persistent threats. While SOC is motivated by largely mechanical processes, the motivation for HOT comes from evolutionary processes and deliberately engineered systems, such as the electric power grid.…”
Section: Introductionmentioning
confidence: 99%