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Decentralised Defence of a (Directed) Network Structure

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  • Marco Pelliccia

    (Department of Economics, Mathematics & Statistics, Birkbeck)

Abstract

We model the decentralised defence choice of agents connected in a directed graph and exposed to an external threat. The network allows the players to receive goods from one or more producers through directed paths. Each agent is endowed with a finite and divisible defence resource that can be allocated to their own security or to that of their peers. The external threat is represented by an intelligent attacker who aims to maximise the flow-disruption by seeking to destroy one node. The set of the attackerÂ’s potential targets is a subset of the set of middleman nodes and producers. These are the critical nodes with highest brokerage power in a directed network and therefore crucial to the system-flow. We show that a decentralised defence allocation is efficient when we assume perfect information: a centralised allocation of defence resources which minimises the flow-disruption coincides with a decentralised allocation. On the other hand, when we assume imperfect information, the decentralised allocation is inefficient and involves no reallocation of defence resources between the nodes. Finally, for a given connected graph, by increasing the link-density we can reduce the set of middleman nodes and thus the number of the potential targets. This also decreases the probability of a successful attack.

Suggested Citation

  • Marco Pelliccia, 2015. "Decentralised Defence of a (Directed) Network Structure," Birkbeck Working Papers in Economics and Finance 1506, Birkbeck, Department of Economics, Mathematics & Statistics.
  • Handle: RePEc:bbk:bbkefp:1506
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    File URL: https://eprints.bbk.ac.uk/id/eprint/15273
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    References listed on IDEAS

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    1. Sanjeev Goyal & Adrien Vigier, 2014. "Attack, Defence, and Contagion in Networks," Review of Economic Studies, Oxford University Press, vol. 81(4), pages 1518-1542.
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    Cited by:

    1. Sonja Brangewitz & Behnud Mir Djawadi & Angelika Endres & Britta Hoyer, 2017. "Network Formation and Disruption - An Experiment - Are Efficient Networks too Complex?," ETA: Economic Theory and Applications 258012, Fondazione Eni Enrico Mattei (FEEM).
    2. 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

    Networks; Network defence; Security.;
    All these keywords.

    JEL classification:

    • C69 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Other

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