Strategic Network Interdiction

Sunghoon Hong
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Sunghoon Hong: Vanderbilt University

No 2011.43, Working Papers from Fondazione Eni Enrico Mattei

Abstract: We develop a strategic model of network interdiction in a non-cooperative game of flow. An adversary, endowed with a bounded quantity of bads, chooses a flow specifying a plan for carrying bads through a network from a base to a target. Simultaneously, an agency chooses a blockage specifying a plan for blocking the transport of bads through arcs in the network. The bads carried to the target cause a target loss while the blocked arcs cause a network loss. The adversary earns and the agency loses from both target loss and network loss. The adversary incurs the expense of carrying bads. In this model we study Nash equilibria and find a power law relation between the probability and the extent of the target loss. Our model contributes to the literature of game theory by introducing non-cooperative behavior into a Kalai-Zemel (cooperative) game of flow. Our research also advances models and results on network interdiction.

Keywords: Network Interdiction; Noncooperative Game of Flow; Nash Equilibrium; Power Law; Kalai-Zemel Game of Flow (search for similar items in EconPapers)
JEL-codes: C72 D85 H56 (search for similar items in EconPapers)
Date: 2011-06
New Economics Papers: this item is included in nep-gth and nep-net
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Citations: View citations in EconPapers (4)

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