This model demonstrates the spread of collapse through a network. The model is abstract but has many applications in various fields. One such application is based on the interpretation that each node represents a firm, and we are modeling the progress of collapse of a firm and its partners represented by link in this network. Each node may be in one of three states: stable, unstable, or collapsed. This model was originally developed by one of the authors (AC) name below, and the model is called Institutional Bundle Theory.