Structural asymmetry as a fraud signature: detecting collusion with Heron's Information Coefficient

November 14, 2025 Β· Declared Dead Β· πŸ› arXiv.org

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Authors Allana Tavares Bastos, Tiago Alves Schieber, Renato Hadad, Laura Carpi, MartΓ­n GΓ³mez Ravetti arXiv ID 2511.10957 Category cs.SI: Social & Info Networks Cross-listed cs.IT Citations 0 Venue arXiv.org Repository https://github.com/FutureLab-DCC/Heron_coefficient Last Checked 2 months ago
Abstract
Fraud in public procurement remains a persistent challenge, especially in large, decentralized systems like Brazil's Unified Health System. We introduce Heron's Information Coefficient (HIC), a geometric measure that quantifies how subgraphs deviate from the global structure of a network. Applied to over eight years of Brazilian bidding data for medical supplies, this measure highlights collusive patterns that standard indicators may overlook. Unlike conventional robustness metrics, the Heron coefficient focuses on the interaction between active and inactive subgraphs, revealing structural shifts that may signal coordinated behavior, such as cartel formation. Synthetic experiments support these findings, demonstrating strong detection performance across varying corruption intensities and network sizes. While our results do not replace legal or economic analyses, they offer an effective complementary tool for auditors and policymakers to monitor procurement integrity more effectively. This study demonstrates that simple geometric insight can reveal hidden dynamics in real-world networks better than other Information Theoretic metrics.
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