In a system of interdependent users, the security of an entity is affected not only by that user’s investment in security measures, but also by the positive externality of the security decisions of (some of) the other users. The provision of security in such system is therefore modeled as a public good provision problem, and is referred to as a security game. In this paper, we compare two well-...

As computing services are increasingly cloud-based, corporations are investing in cloud-based security measures. The Security-asa-Service (SECaaS) paradigm allows customers to outsource security to the cloud, through the payment of a subscription fee. However, no security system is bulletproof, and even one successful attack can result in the loss of data and revenue worth millions of dollars. ...

Besides the structure of interactions within networks, also the interactions between networks are of the outmost importance. We therefore study the outcome of the public goods game on two interdependent networks that are connected by means of a utility function, which determines how payoffs on both networks jointly influence the success of players in each individual network. We show that an unb...

Abstract Interdependent networks are ubiquitous in our society, ranging from infrastructure to economics, and the study of their cascading behaviors using percolation theory has attracted much attention in the recent years. To analyze the percolation phenomena of these systems, different mathematical frameworks have been proposed including generating functions, eigenvalues among some others. Th...

* Earlier versions of this paper have been presented at the Workshop " Organizational Encounters with Risk " at the London School of Economics (LSE) May 3-4, 2002 and the Risk Symposium " Formulating Policy to Deal with Contemporary Environmental Risks " at Ohio State University (OSU) on May 13, 2002. We appreciate the helpful comments by Jim Ament and Paul Kleindorfer as well as those particip...

The popularity of third-party apps on social network sites and mobile networks emphasizes the problem of the interdependency of privacy. It is caused by users installing apps that often collect and potentially misuse the personal information of users’ friends who are typically not involved in the decision-making process. In this paper, we provide an economic model and simulation results address...

Companies increasingly form interdependent relationships between contractors and sub-contractors that extend across national borders and legal jurisdictions. In consequence, supply chain risk management (SCRM) is an increasing concern for the cyber security of safety-critical systems. The following pages argue that outsourcing undermines SCRM by eroding technical expertise, which companies need...

Recent advances in information technology have transformed the way in which mission-critical services get delivered and are evaluated today. These services are heavily and increasingly relying on an interdependent crossed network of critical information infrastructures, spanning from private to government sectors. In order to enable such infrastructures to efficiently mitigate risks, optimize t...