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How do you defend a network?

Author

Listed:
  • Dziubiński, Marcin Konrad

    (Institute of Informatics, Faculty of Mathematics, Informatics and Mechanics, University of Warsaw)

  • Goyal, Sanjeev

    (Faculty of Economics and Christ's College, University of Cambridge)

Abstract

Modern economies rely heavily on their infrastructure networks. These networks face threats ranging from natural disasters to human attacks. As networks are pervasive, the investments needed to protect them are very large; this motivates the study of targeted defence. What are the ‘key’ nodes to defend to maximize functionality of the network? What are the incentives of individual nodes to protect themselves in a networked environment and how do these incentives correspond to collective welfare? We provide a characterization of equilibrium attack and defence in terms of two classical concepts in graph theory – separators and transversals. We use this characterization to study the intensity of conflict (the resources spent on attack and defence) and the prospects of active conflict (when both adversary and defender target nodes for action) in networks. Finally, we show that welfare costs of decentralized defence can be very large

Suggested Citation

  • Dziubiński, Marcin Konrad & Goyal, Sanjeev, 2017. "How do you defend a network?," Theoretical Economics, Econometric Society, vol. 12(1), January.
  • Handle: RePEc:the:publsh:2088
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Zenou, Yves & Xu, Jin & Zhou, Junjie, 2019. "Networks in Conflict: A Variational Inequality Approach," CEPR Discussion Papers 13647, C.E.P.R. Discussion Papers.
    2. Myatt, David P. & Wallace, Chris, 2019. "Information acquisition and use by networked players," Journal of Economic Theory, Elsevier, vol. 182(C), pages 360-401.
    3. Dan Kovenock & Brian Roberson & Roman M. Sheremeta, 2019. "The attack and defense of weakest-link networks," Public Choice, Springer, vol. 179(3), pages 175-194, June.
    4. Belhaj, Mohamed & Deroïan, Frédéric, 2018. "Targeting the key player: An incentive-based approach," Journal of Mathematical Economics, Elsevier, vol. 79(C), pages 57-64.
    5. Daniel Woods & Mustafa Abdallah & Saurabh Bagchi & Shreyas Sundaram & Timothy Cason, 2022. "Network defense and behavioral biases: an experimental study," Experimental Economics, Springer;Economic Science Association, vol. 25(1), pages 254-286, February.
    6. Bloch, Francis & Chatterjee, Kalyan & Dutta, Bhaskar, 2023. "Attack and interception in networks," Theoretical Economics, Econometric Society, vol. 18(4), November.
    7. Charlson, G., 2021. "Third-Degree Price Discrimination in the Age of Big Data," Janeway Institute Working Papers 2104, Faculty of Economics, University of Cambridge.
    8. Bloch, Francis & Dutta, Bhaskar & Dziubiński, Marcin, 2020. "A game of hide and seek in networks," Journal of Economic Theory, Elsevier, vol. 190(C).
    9. Alessandro Fedele & Cristian Roner, 2022. "Dangerous games: A literature review on cybersecurity investments," Journal of Economic Surveys, Wiley Blackwell, vol. 36(1), pages 157-187, February.
    10. Andrea Galeotti & Benjamin Golub & Sanjeev Goyal, 2020. "Targeting Interventions in Networks," Econometrica, Econometric Society, vol. 88(6), pages 2445-2471, November.
    11. Goyal, S., 2016. "Networks and Markets," Cambridge Working Papers in Economics 1652, Faculty of Economics, University of Cambridge.
    12. Britta Hoyer & Kris De Jaegher, 2023. "Network disruption and the common-enemy effect," International Journal of Game Theory, Springer;Game Theory Society, vol. 52(1), pages 117-155, March.
    13. Konrad, Kai A. & Morath, Florian, 2023. "How to preempt attacks in multi-front conflict with limited resources," European Journal of Operational Research, Elsevier, vol. 305(1), pages 493-500.
    14. Dan Kovenock & Brian Roberson, 2018. "The Optimal Defense Of Networks Of Targets," Economic Inquiry, Western Economic Association International, vol. 56(4), pages 2195-2211, October.
    15. Britta Hoyer & Stephanie Rosenkranz, 2018. "Determinants of Equilibrium Selection in Network Formation: An Experiment," Games, MDPI, vol. 9(4), pages 1-25, November.
    16. Xu, Jin & Zenou, Yves & Zhou, Junjie, 2022. "Equilibrium characterization and shock propagation in conflict networks," Journal of Economic Theory, Elsevier, vol. 206(C).
    17. Konrad, Kai A., 2020. "Attacking and defending multiple valuable secrets in a big data world," European Journal of Operational Research, Elsevier, vol. 280(3), pages 1122-1129.
    18. Charlson, G., 2021. "Third-Degree Price Discrimination in the Age of Big Data," Cambridge Working Papers in Economics 2159, Faculty of Economics, University of Cambridge.
    19. Manxi Wu & Saurabh Amin, 2019. "Securing Infrastructure Facilities: When Does Proactive Defense Help?," Dynamic Games and Applications, Springer, vol. 9(4), pages 984-1025, December.
    20. Chen, J. & Elliott, M. & Koh, A., 2020. "Capability Accumulation and Conglomeratization in the Information Age," Cambridge Working Papers in Economics 2069, Faculty of Economics, University of Cambridge.
    21. Djawadi, Behnud Mir & Endres, Angelika & Hoyer, Britta & Recker, Sonja, 2019. "Network formation and disruption - An experiment are equilibrium networks too complex?," Journal of Economic Behavior & Organization, Elsevier, vol. 157(C), pages 708-734.

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    More about this item

    Keywords

    Infrastructure; costs of conflict; windmill graph; attack; defence;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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