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Network security

Author

Listed:
  • Larson, Nathan

Abstract

In a variety of settings, some payoff-relevant item spreads along a network of connected individuals. In some cases, the item will benefit those who receive it (for example, a music download, a stock tip, news about a new research funding source, etc.) while in other cases the impact may be negative (for example, viruses, both biological and electronic, financial contagion, and so on). Often, good and bad items may propagate along the same networks, so individuals must weigh the costs and benefits of being more or less connected to the network. The situation becomes more complicated (and more interesting) if individuals can also put effort into security, where security can be thought of as a screening technology that allows an individual to keep getting the benefits of network connectivity while blocking out the bad items. Drawing on the network literatures in economics, epidemiology, and applied math, we formulate a model of network security that can be used to study individual incentives to expand and secure networks and characterize properties of a symmetric equilibrium.

Suggested Citation

  • Larson, Nathan, 2011. "Network security," MPRA Paper 32822, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:32822
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    File URL: https://mpra.ub.uni-muenchen.de/32822/1/MPRA_paper_32822.pdf
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    References listed on IDEAS

    as
    1. Vega-Redondo,Fernando, 2007. "Complex Social Networks," Cambridge Books, Cambridge University Press, number 9780521857406.
    2. Sanjeev Goyal, 2007. "Introduction to Connections: An Introduction to the Economics of Networks," Introductory Chapters,in: Connections: An Introduction to the Economics of Networks Princeton University Press.
    3. Jackson, Matthew O. & Wolinsky, Asher, 1996. "A Strategic Model of Social and Economic Networks," Journal of Economic Theory, Elsevier, vol. 71(1), pages 44-74, October.
    4. Venkatesh Bala & Sanjeev Goyal, 2000. "A Noncooperative Model of Network Formation," Econometrica, Econometric Society, vol. 68(5), pages 1181-1230, September.
    5. Dan Kovenock & Brian Roberson, 2010. "The Optimal Defense of Networks of Targets," Purdue University Economics Working Papers 1251, Purdue University, Department of Economics.
    6. Vega-Redondo,Fernando, 2007. "Complex Social Networks," Cambridge Books, Cambridge University Press, number 9780521674096.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Acemoglu, Daron & Malekian, Azarakhsh & Ozdaglar, Asu, 2016. "Network security and contagion," Journal of Economic Theory, Elsevier, vol. 166(C), pages 536-585.

    More about this item

    Keywords

    social networks; network security; network robustness; contagion; random graphs;

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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