Firms in inter-organizational networks such as supply chains or strategic alliances are exposed to interdependent risks. These are risks that are transferable across partner firms. They can be decomposed into intrinsic risks a firm faces from its own operations and extrinsic risks transferred from its partners. Firms broadly have access to two security strategies: either they can independently eliminate both intrinsic and extrinsic risks by securing their links with partners, or alternatively, firms can cooperate with partners to eliminate sources of intrinsic risk in the network. We develop a graph-theoretic model of interdependent security and demonstrate that the network-optimal security strategy can be computed in polynomial time. Then, we use cooperative game-theoretic tools to examine whether and when firms can sustain the network-optimal security strategy via cost-sharing mechanisms that are stable, fair, computable, and implementable via a series of bilateral cost-sharing arrangements. We consider different informational assumptions in the network and show that, when the players know only their own costs, firms have a clear incentive to cooperate globally whereas, in the presence of public information, there may not exist cost-sharing mechanisms that can sustain network-wide cooperation. We then design a novel cost-sharing mechanism: the agreeable allocation, that is easy to compute, bilaterally implementable, ensures stability, and is fair in a well-defined sense. However, the agreeable allocation need not always exist. We then generalize levels of agreeable allocation, with weaker implementability properties but greater existence guarantees.
A generalized model of games is proposed, in which cooperative games and non-cooperative games are special cases. Some games that are neither cooperative nor non-cooperative can be expressed and analyzed. The model is based on relationships and supposed relationships between players. A relationship is a numerical value that denotes how one player cares for the payoffs of another player, while a supposed relationship is another numerical value that denotes a player's belief about the relationship between two players. The players choose their strategies by taking into consideration not only the …
We propose interdependent defense (IDD) games, a computational game-theoretic framework to study aspects of the interdependence of risk and security in multi-agent systems under deliberate external attacks. Our model builds upon interdependent security (IDS) games, a model due to Heal and Kunreuther that considers the source of the risk to be the result of a fixed randomizedstrategy. We adapt IDS games to model the attacker's deliberate behavior. We define the attacker's pure-strategy space and utility function and derive appropriate cost functions for the defenders. We provide a complete char…
With increasing connectivity among comprising agents or (sub-)systems in large, complex systems, there is a growing interest in understanding interdependent security and dealing with inefficiency in security investments. Making use of a population game model and the well-known Chung-Lu random graph model, we study how one could encourage selfish agents to invest more in security by internalizing the externalities produced by their security investments. To this end, we first establish an interesting relation between the local minimizers of social cost and the Nash equilibria of a population gam…
We introduce a novel framework for computing optimal randomized security policies in networked domains which extends previous approaches in several ways. First, we extend previous linear programming techniques for Stackelberg security games to incorporate benefits and costs of arbitrary security configurations on individual assets. Second, we offer a principled model of failure cascades that allows us to capture both the direct and indirect value of assets, and extend this model to capture uncertainty about the structure of the interdependency network. Third, we extend the linear programming f…
This paper studies a stochastic game theoretic approach to security and intrusion detection in communication and computer networks. Specifically, an Attacker and a Defender take part in a two-player game over a network of nodes whose security assets and vulnerabilities are correlated. Such a network can be modeled using weighted directed graphs with the edges representing the influence among the nodes. The game can be formulated as a non-cooperative zero-sum or nonzero-sum stochastic game. However, due to correlation among the nodes, if some nodes are compromised, the effective security assets…
The reliability and security of a user in an interconnected system depends on all users' collective effort in security. Consequently, investments in security technologies by strategic users is typically modeled as a public good problem, known as the Interdependent Security (IDS) game. The equilibria for such games are often inefficient, as selfish users free-ride on positive externalities of others' contributions. In this paper, we present a mechanism that implements the socially optimal equilibrium in an IDS game through a message exchange process, in which users submit proposals about the se…
We investigate cascades in networks consisting of strategic agents with interdependent security. We assume that the strategic agents have choices between i) investing in protecting themselves, ii) purchasing insurance to transfer (some) risks, and iii) taking no actions. Using a population game model, we study how various system parameters, such as node degrees, infection propagation rate, and the probability with which infected nodes transmit infection to neighbors, affect nodes' choices at Nash equilibria and the resultant price of anarchy/stability. In addition, we examine how the probabili…
Purdue University（普渡大学）；Ohio State University（俄亥俄州立大学）；Qatar Computing Research Institute（卡塔尔计算研究所）
We model the behavioral biases of human decision-making in securing interdependent systems and show that such behavioral decision-making leads to a suboptimal pattern of resource allocation compared to non-behavioral (rational) decision-making. We provide empirical evidence for the existence of such behavioral bias model through a controlled subject study with 145 participants. We then propose three learning techniques for enhancing decision-making in multi-round setups. We illustrate the benefits of our decision-making model through multiple interdependent real-world systems and quantify the …
We consider a system consisting of multiple interdependent assets, and a set of defenders, each responsible for securing a subset of the assets against an attacker. The interdependencies between the assets are captured by an attack graph, where an edge from one asset to another indicates that if the former asset is compromised, an attack can be launched on the latter asset. Each edge has an associated probability of successful attack, which can be reduced via security investments by the defenders. In such scenarios, we investigate the security investments that arise under certain features of h…
Co-Investment with Payoff-Sharing Mechanism for Cooperative Decision-Making in Network Design Games
Institute for Dynamic Systems and Control, ETH Zurich（苏黎世联邦理工学院动态系统与控制研究所）；Laboratory for Information and Decision Systems, Massachusetts Institute of Technology（麻省理工学院信息与决策系统实验室）
Computation offloading via device-to-device (D2D) communication, or D2D offloading, has recently been proposed to enhance mobile computing performance by exploiting spare computing resources of nearby user devices. The success of D2D offloading relies on user participation in collaborative service provisioning, which incurs extra costs to users providing the service, thus mandating an incentive mechanism that can compensate for these costs. Although incentive mechanism design has been intensively studied in the literature, this paper considers a much more challenging yet less investigated prob…
Most previous works study the evolution of cooperation in a structured population by commonly employing an isolated single network. However, realistic systems are composed of many interdependent networks coupled with each other, rather than the isolated single one. In this paper, we consider a system including two interacting networks with the same size, entangled with each other by the introduction of probabilistic interconnections. We introduce the public goods game into such system, and study how the probabilistic interconnection influences the evolution of cooperation of the whole system a…
To ensure security in data transmission is one of the most important issues for wireless relay networks, and physical layer security is an attractive alternative solution to address this issue. In this paper, we consider a cooperative network, consisting of one source node, one destination node, one eavesdropper node, and a number of relay nodes. Specifically, the source may select several relays to help forward the signal to the corresponding destination to achieve the best security performance. However, the relays may have the incentive not to report their true private channel information in…
Wireless Sensor Networks (WSN) support data collection and distributed data processing by means of very small sensing devices that are easy to tamper and cloning: therefore classical security solutions based on access control and strong authentication are difficult to deploy. In this paper we look at the problem of assessing security of node localization. In particular, we analyze the scenario in which Verifiable Multilateration (VM) is used to localize nodes and a malicious node (i.e., the adversary) try to masquerade as non-malicious. We resort to non-cooperative game theory and we model thi…
Cooperation between wireless network nodes is a promising technique for improving the physical layer security of wireless transmission, in terms of secrecy capacity, in the presence of multiple eavesdroppers. While existing physical layer security literature answered the question "what are the link-level secrecy capacity gains from cooperation?", this paper attempts to answer the question of "how to achieve those gains in a practical decentralized wireless network and in the presence of a secrecy capacity cost for information exchange?". For this purpose, we model the physical layer security c…
