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) |
|---|---|
| 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