The previous lesson established the single-number dichotomy at the heart of branching-process theory: extinction is certain if , and merely possible if . This note names the three resulting regimes — subcritical, critical, supercritical — and looks at what distinguishes them beyond the single fact of certain-vs-possible extinction: how fast the subcritical process dies, why the critical case is a knife-edge, and how the supercritical process's growth is tamed into a genuine limiting random variable.
Learning objectives. By the end of this note you should be able to:
- classify a branching process into one of the three criticality regimes from its offspring mean;
- describe the qualitatively different long-run behaviour in each regime;
- view the Galton-Watson chain's degenerate stationary structure through the lens of Markov chain classification;
- connect the criticality threshold to a finance-facing contagion/cascade interpretation.
In this lesson
- The three regimes
- The Galton-Watson chain as a degenerate Markov chain
- Supercritical growth: taming the explosion
- Finance interpretation: cascades and criticality
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