IDEAS home Printed from https://ideas.repec.org/a/eee/ijocip/v3y2010i3p128-139.html
   My bibliography  Save this article

The interdependent security problem in the defense industrial base: An agent-based model on a social network

Author

Listed:
  • Hare, Forrest
  • Goldstein, Jonathan

Abstract

This paper extends the Kunreuther and Heal game-theoretic model of the interdependent security problem by applying the model to an empirically based network environment. The scale-free network is derived from the contract-based organization of the defense industry. Theft of knowledge in this industry could have an impact on both economic and national security. However, imperfect information in the IT security market and the interdependent nature of the investment decision create the potential for underinvestment or overinvestment. An agent-based modeling technique demonstrates that social network topology may influence policy measures designed to induce tipping and cascading in cyber security investments.

Suggested Citation

  • Hare, Forrest & Goldstein, Jonathan, 2010. "The interdependent security problem in the defense industrial base: An agent-based model on a social network," International Journal of Critical Infrastructure Protection, Elsevier, vol. 3(3), pages 128-139.
    • Handle: RePEc:eee:ijocip:v:3:y:2010:i:3:p:128-139
    DOI: 10.1016/j.ijcip.2010.07.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1874548210000387
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijcip.2010.07.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    2. Kunreuther, Howard & Heal, Geoffrey, 2003. "Interdependent Security," Journal of Risk and Uncertainty, Springer, vol. 26(2-3), pages 231-249, March-May.
    3. Geoffrey Heal & Howard Kunreuther, 2005. "IDS Models of Airline Security," Journal of Conflict Resolution, Peace Science Society (International), vol. 49(2), pages 201-217, April.
    4. Hausken, Kjell, 2006. "Income, interdependence, and substitution effects affecting incentives for security investment," Journal of Accounting and Public Policy, Elsevier, vol. 25(6), pages 629-665.
    5. Geoffrey Heal & Howard Kunreuther, 2007. "Modeling Interdependent Risks," Risk Analysis, John Wiley & Sons, vol. 27(3), pages 621-634, June.
    6. Yossi Sheffi, 2005. "The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262693496, December.
    7. Dunia López-Pintado & Duncan J. Watts, 2008. "Social Influence, Binary Decisions and Collective Dynamics," Rationality and Society, , vol. 20(4), pages 399-443, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xing Gao & Weijun Zhong & Shue Mei, 2015. "Security investment and information sharing under an alternative security breach probability function," Information Systems Frontiers, Springer, vol. 17(2), pages 423-438, April.
    2. Singh, Abhishek Narain & Gupta, M.P. & Ojha, Amitabh, 2014. "Identifying critical infrastructure sectors and their dependencies: An Indian scenario," International Journal of Critical Infrastructure Protection, Elsevier, vol. 7(2), pages 71-85.
    3. Lu, Qing-Chang & Xu, Peng-Cheng & Zhao, Xiangmo & Zhang, Lei & Li, Xiaoling & Cui, Xin, 2022. "Measuring network interdependency between dependent networks: A supply-demand-based approach," Reliability Engineering and System Safety, Elsevier, vol. 225(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yan, Xihong & Ren, Xiaorong & Nie, Xiaofeng, 2022. "A budget allocation model for domestic airport network protection," Socio-Economic Planning Sciences, Elsevier, vol. 82(PB).
    2. Bandyopadhyay, Subhayu & Sandler, Todd, 2021. "Counterterrorism policy: Spillovers, regime solidity, and corner solutions," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 811-827.
    3. Geoffrey Heal & Howard Kunreuther, 2010. "Environment and Energy: Catastrophic Liabilities from Nuclear Power Plants," NBER Chapters, in: Measuring and Managing Federal Financial Risk, pages 235-257, National Bureau of Economic Research, Inc.
    4. Scott DuHadway & Steven Carnovale & Benjamin Hazen, 2019. "Understanding risk management for intentional supply chain disruptions: risk detection, risk mitigation, and risk recovery," Annals of Operations Research, Springer, vol. 283(1), pages 179-198, December.
    5. Geoffrey Heal & Howard Kunreuther, 2007. "Modeling Interdependent Risks," Risk Analysis, John Wiley & Sons, vol. 27(3), pages 621-634, June.
    6. Nagurney, Anna & Shukla, Shivani & Nagurney, Ladimer S. & Saberi, Sara, 2018. "A game theory model for freight service provision security investments for high-value cargo," Economics of Transportation, Elsevier, vol. 16(C), pages 21-28.
    7. Kay-Yut Chen & Jingguo Wang & Yan Lang, 2022. "Coping with Digital Extortion: An Experimental Study of Benefit Appeals and Normative Appeals," Management Science, INFORMS, vol. 68(7), pages 5269-5286, July.
    8. Bandyopadhyay, Subhayu & Sandler, Todd, 2023. "Voluntary participation in a terror group and counterterrorism policy," Journal of Economic Behavior & Organization, Elsevier, vol. 215(C), pages 500-513.
    9. Geoffrey Heal & Howard Kunreuther, 2006. "Supermodularity and Tipping," NBER Working Papers 12281, National Bureau of Economic Research, Inc.
    10. Kjell Hausken & Jun Zhuang, 2016. "The strategic interaction between a company and the government surrounding disasters," Annals of Operations Research, Springer, vol. 237(1), pages 27-40, February.
    11. Levitin, Gregory & Hausken, Kjell, 2009. "False targets efficiency in defense strategy," European Journal of Operational Research, Elsevier, vol. 194(1), pages 155-162, April.
    12. Geoffrey Heal & Howard Kunreuther, 2010. "Social Reinforcement: Cascades, Entrapment, and Tipping," American Economic Journal: Microeconomics, American Economic Association, vol. 2(1), pages 86-99, February.
    13. Stranlund, John K. & Field, Barry C., 2006. "On the Production of Homeland Security Under True Uncertainty," Working Paper Series 14505, University of Massachusetts, Amherst, Department of Resource Economics.
    14. Tridib Bandyopadhyay & Dengpan Liu & Vijay S. Mookerjee & Allen W. Wilhite, 2014. "Dynamic competition in IT security: A differential games approach," Information Systems Frontiers, Springer, vol. 16(4), pages 643-661, September.
    15. Bandyopadhyay, Subhayu & Sandler, Todd, 2023. "Politically influenced counterterrorism policy and welfare efficiency," European Journal of Political Economy, Elsevier, vol. 76(C).
    16. Hausken, Kjell, 2008. "Strategic defense and attack for series and parallel reliability systems," European Journal of Operational Research, Elsevier, vol. 186(2), pages 856-881, April.
    17. Nitin Bakshi & Stephen E. Flynn & Noah Gans, 2011. "Estimating the Operational Impact of Container Inspections at International Ports," Management Science, INFORMS, vol. 57(1), pages 1-20, January.
    18. Sanjith Gopalakrishnan & Sriram Sankaranarayanan, 2023. "Cooperative security against interdependent risks," Production and Operations Management, Production and Operations Management Society, vol. 32(11), pages 3504-3520, November.
    19. Amandha Ganegoda & John Evans, 2014. "A framework to manage the measurable, immeasurable and the unidentifiable financial risk," Australian Journal of Management, Australian School of Business, vol. 39(1), pages 5-34, February.
    20. Annette Hofmann, 2007. "Internalizing externalities of loss prevention through insurance monopoly: an analysis of interdependent risks," The Geneva Papers on Risk and Insurance Theory, Springer;International Association for the Study of Insurance Economics (The Geneva Association), vol. 32(1), pages 91-111, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ijocip:v:3:y:2010:i:3:p:128-139. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/international-journal-of-critical-infrastructure-protection .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.