IDEAS home Printed from https://ideas.repec.org/p/arx/papers/1711.00708.html
   My bibliography  Save this paper

On Game-Theoretic Risk Management (Part Three) - Modeling and Applications

Author

Listed:
  • Stefan Rass

Abstract

The game-theoretic risk management framework put forth in the precursor reports "Towards a Theory of Games with Payoffs that are Probability-Distributions" (arXiv:1506.07368 [q-fin.EC]) and "Algorithms to Compute Nash-Equilibria in Games with Distributions as Payoffs" (arXiv:1511.08591v1 [q-fin.EC]) is herein concluded by discussing how to integrate the previously developed theory into risk management processes. To this end, we discuss how loss models (primarily but not exclusively non-parametric) can be constructed from data. Furthermore, hints are given on how a meaningful game theoretic model can be set up, and how it can be used in various stages of the ISO 27000 risk management process. Examples related to advanced persistent threats and social engineering are given. We conclude by a discussion on the meaning and practical use of (mixed) Nash equilibria equilibria for risk management.

Suggested Citation

  • Stefan Rass, 2017. "On Game-Theoretic Risk Management (Part Three) - Modeling and Applications," Papers 1711.00708, arXiv.org.
    • Handle: RePEc:arx:papers:1711.00708
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/1711.00708
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stefan Rass, 2015. "On Game-Theoretic Risk Management (Part One) -- Towards a Theory of Games with Payoffs that are Probability-Distributions," Papers 1506.07368, arXiv.org, revised Apr 2020.
    2. R.J. Aumann & S. Hart (ed.), 2002. "Handbook of Game Theory with Economic Applications," Handbook of Game Theory with Economic Applications, Elsevier, edition 1, volume 3, number 3.
    3. Li, Qi & Racine, Jeff, 2003. "Nonparametric estimation of distributions with categorical and continuous data," Journal of Multivariate Analysis, Elsevier, vol. 86(2), pages 266-292, August.
    4. Avenhaus, Rudolf & Von Stengel, Bernhard & Zamir, Shmuel, 2002. "Inspection games," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 3, chapter 51, pages 1947-1987, Elsevier.
    5. Stefan Rass & Sandra König & Stefan Schauer, 2017. "Defending Against Advanced Persistent Threats Using Game-Theory," PLOS ONE, Public Library of Science, vol. 12(1), pages 1-43, January.
    Full references (including those not matched with items on IDEAS)

    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. Bård Harstad & Torben K. Mideksa, 2017. "Conservation Contracts and Political Regimes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 84(4), pages 1708-1734.
    2. Zoroa, N. & Fernández-Sáez, M.J. & Zoroa, P., 2012. "Patrolling a perimeter," European Journal of Operational Research, Elsevier, vol. 222(3), pages 571-582.
    3. Páez-Pérez, David & Sánchez-Silva, Mauricio, 2016. "A dynamic principal-agent framework for modeling the performance of infrastructure," European Journal of Operational Research, Elsevier, vol. 254(2), pages 576-594.
    4. Jelnov, Artyom & Tauman, Yair & Zeckhauser, Richard, 2017. "Attacking the unknown weapons of a potential bomb builder: The impact of intelligence on the strategic interaction," Games and Economic Behavior, Elsevier, vol. 104(C), pages 177-189.
    5. V. N. Kolokoltsov & O. A. Malafeyev, 2017. "Mean-Field-Game Model of Corruption," Dynamic Games and Applications, Springer, vol. 7(1), pages 34-47, March.
    6. Günter Fandel & Jan Trockel, 2013. "Applying a one-shot and infinite repeated inspection game to materials management," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 21(2), pages 495-506, March.
    7. Marco Faravelli & Randall Walsh, 2011. "Smooth Politicians And Paternalistic Voters: A Theory Of Large Elections," Levine's Working Paper Archive 786969000000000250, David K. Levine.
    8. Ding, Zhanwen & Shi, Guiping, 2009. "Cooperation in a dynamical adjustment of duopoly game with incomplete information," Chaos, Solitons & Fractals, Elsevier, vol. 42(2), pages 989-993.
    9. Steven J. Brams & Michael A. Jones & D. Marc Kilgour, 2002. "Single-Peakedness and Disconnected Coalitions," Journal of Theoretical Politics, , vol. 14(3), pages 359-383, July.
    10. Carlos Alós-Ferrer & Jaume García-Segarra & Miguel Ginés-Vilar, 2018. "Anchoring on Utopia: a generalization of the Kalai–Smorodinsky solution," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 6(2), pages 141-155, October.
    11. Tatsuya Kitagawa & Yasushi Masuda & Masashi Umezawa, 2020. "Impact of technology development costs on licensing form in a differentiated Cournot duopoly," International Journal of Economic Theory, The International Society for Economic Theory, vol. 16(2), pages 153-166, June.
    12. Youngsub Chun, 2020. "Some Impossibility Results on the Converse Consistency Principle in Bargaining," Homo Oeconomicus: Journal of Behavioral and Institutional Economics, Springer, vol. 37(1), pages 59-65, November.
    13. Meniere, Yann & Parlane, Sarah, 2010. "Decentralized licensing of complementary patents: Comparing the royalty, fixed-fee and two-part tariff regimes," Information Economics and Policy, Elsevier, vol. 22(2), pages 178-191, May.
    14. Cunyat, Antoni & Sloof, Randolph, 2011. "Employee types and endogenous organizational design: An experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 80(3), pages 553-573.
    15. Jhinyoung Shin & Rajdeep Singh, 2010. "Corporate Disclosures: Strategic Donation of Information," International Review of Finance, International Review of Finance Ltd., vol. 10(3), pages 313-337, September.
    16. Cordoba, Jose M. & Hammond, Peter J., 1998. "Asymptotically strategy-proof Walrasian exchange," Mathematical Social Sciences, Elsevier, vol. 36(3), pages 185-212, December.
    17. André Casajus & Harald Wiese, 2017. "Scarcity, competition, and value," International Journal of Game Theory, Springer;Game Theory Society, vol. 46(2), pages 295-310, May.
    18. Mario Guajardo & Kurt Jörnsten & Mikael Rönnqvist, 2016. "Constructive and blocking power in collaborative transportation," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 38(1), pages 25-50, January.
    19. Sylvie Thoron, 2016. "Morality Beyond Social Preferences: Smithian Sympathy, Social Neuroscience and the Nature of Social Consciousness [La moralité au delà des préférences sociales. La sympathie Smithienne, les neurosc," Post-Print hal-01645043, HAL.
    20. Martin W. Cripps & Jonathan P. Thomas, 2003. "Some Asymptotic Results in Discounted Repeated Games of One-Sided Incomplete Information," Mathematics of Operations Research, INFORMS, vol. 28(3), pages 433-462, August.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:arx:papers:1711.00708. 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: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    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.