Abstract
This paper studies a game of attack and interception in a network where a single attacker chooses a target and a path, and each node chooses a level of protection. We show that the Nash equilibrium of the game exists and is unique. We characterize equilibrium attack paths and attack distributions as a function of the underlying network and target values. We show that adding a link or increasing the value of a target may harm the attacker—a comparative statics effect that is reminiscent of Braess's paradox in transportation economics. Finally, we contrast the Nash equilibrium with the equilibrium of a variant of the model: one where all nodes cooperate in interception.
Original language | English (US) |
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Pages (from-to) | 1511-1546 |
Number of pages | 36 |
Journal | Theoretical Economics |
Volume | 18 |
Issue number | 4 |
DOIs | |
State | Published - Nov 2023 |
All Science Journal Classification (ASJC) codes
- General Economics, Econometrics and Finance