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“Gaming the System”: Decision Making by Interdependent Critical Infrastructure

Author

Listed:
  • Allison C. Reilly

    (Industrial and Operations Engineering, College of Engineering, University of Michigan, Ann Arbor, Michigan 48109; Department of Geography and Environmental Engineering, Whiting School of Engineering, Johns Hopkins University, Baltimore, Maryland 21218)

  • Andrew Samuel

    (Department of Economics, Sellinger School of Business, Loyola University Maryland, Baltimore, Maryland 21210)

  • Seth D. Guikema

    (Industrial and Operations Engineering, College of Engineering, University of Michigan, Ann Arbor, Michigan 48109; Department of Geography and Environmental Engineering, Whiting School of Engineering, Johns Hopkins University, Baltimore, Maryland 21218)

Abstract

Supporting strong, resilient, and integrated critical infrastructure is vital to upholding the U.S. economy and its national security. Arguably, no sector of the economy could exist without the reliable and predictable networks on which it depends. To date, the research on interdependent infrastructure has concentrated on describing the sources of the dependencies and developing models for predicting performance and cascading disruptions after a hazardous event. However, these models fail to capture the perspective of the operators of these networks and how competing, independent objectives lead to suboptimal investment decisions and hence suboptimal network performance. Rather than focus on how interdependent infrastructures operate and possibly fail, we take the perspective of their operators and ask why they make the decisions that they do. The goal of this paper is to demonstrate how strategic interdependencies may impact performance of coupled systems by shifting investments away from what is collectively best toward decisions that are more myopic and optimal from the perspective of a single infrastructure. Through our model, we make inferences on the level of investments networks make, relate this to performance, and provide policy recommendations on how to promote reliable infrastructure.

Suggested Citation

  • Allison C. Reilly & Andrew Samuel & Seth D. Guikema, 2015. "“Gaming the System”: Decision Making by Interdependent Critical Infrastructure," Decision Analysis, INFORMS, vol. 12(4), pages 155-172, December.
    • Handle: RePEc:inm:ordeca:v:12:y:2015:i:4:p:155-172
    DOI: 10.1287/deca.2015.0318
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    References listed on IDEAS

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    1. Linda K. Nozick & Mark A. Turnquist & Dean A. Jones & Jennifer R. Davis & Craig R. Lawton, 2005. "Assessing the performance of interdependent infrastructures and optimising investments," International Journal of Critical Infrastructures, Inderscience Enterprises Ltd, vol. 1(2/3), pages 144-154.
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    Cited by:

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    2. Camilo Gomez & Andrés D. González & Hiba Baroud & Claudia D. Bedoya‐Motta, 2019. "Integrating Operational and Organizational Aspects in Interdependent Infrastructure Network Recovery," Risk Analysis, John Wiley & Sons, vol. 39(9), pages 1913-1929, September.
    3. Magoua, Joseph Jonathan & Li, Nan, 2023. "The human factor in the disaster resilience modeling of critical infrastructure systems," Reliability Engineering and System Safety, Elsevier, vol. 232(C).
    4. Andrew M. Smith & Andrés D. González & Leonardo Dueñas‐Osorio & Raissa M. D'Souza, 2020. "Interdependent Network Recovery Games," Risk Analysis, John Wiley & Sons, vol. 40(1), pages 134-152, January.

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