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How to Defend a Network?

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  • Marcin Dziubinski
  • Sanjeev Goyal

Abstract

Modern economies rely heavily on their infrastructure networks. These networks face threats ranging from natural disasters to human attacks. As networks are pervasive, the investments needed to protect them are very large; this motivates the study of targeted defence. What are the ‘key’ nodes to defend to maximize functionality of the network? What are the incentives of individual nodes to protect themselves in a networked environment and how do these incentives correspond to collective welfare? We provide a characterization of equilibrium attack and defence in terms of two classical concepts in graph theory – separators and transversals. We study the welfare costs of decentralized defence. We apply our results to the defence of the US Airport Network and the London Underground.

Suggested Citation

  • Marcin Dziubinski & Sanjeev Goyal, 2014. "How to Defend a Network?," Cambridge Working Papers in Economics 1450, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:1450
    Note: sg472
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    References listed on IDEAS

    as
    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. Marcin Dziubinski & Sanjeev Goyal & Adrien Vigier, 2015. "Conflict and Networks," Cambridge Working Papers in Economics 1565, Faculty of Economics, University of Cambridge.
    2. Daron Acemoglu & Asuman Ozdaglar & Alireza Tahbaz-Salehi, 2015. "Networks, Shocks, and Systemic Risk," NBER Working Papers 20931, National Bureau of Economic Research, Inc.

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