A Dynamic Incentive Mechanism for Security in Networks of Interdependent Agents

We study a dynamic mechanism design problem for a network of interdependent strategic agents with coupled dynamics. In contrast to the existing results for static settings, we present a dynamic mechanism that is incentive compatible, individually rational, budget balanced, and social welfare maximizing. We utilize the correlation among agents’ states over time, and determine a set of inference signals for all agents that enable us to design a set of incentive payments that internalize the effect of each agent on the overall network dynamic status, and thus, align each agent’s objective with the social objective.

[1]  R. Myerson.  MULTISTAGE GAMES WITH COMMUNICATION , 1984 .

[2]  Aron Laszka,et al.  A Survey of Interdependent Security Games Working paper , 2012 .

[3]  Heng Liu.  Efficient Dynamic Mechanisms in Environments with Interdependent Valuations , 2014 .

[4]  M. Jackson,et al.  Games on Networks , 2014 .

[5]  Levente Buttyán,et al.  A Survey of Interdependent Information Security Games , 2014, ACM Comput. Surv..

[6]  Ali Jadbabaie,et al.  Competitive Diffusion in Social Networks: Quality or Seeding? , 2015, IEEE Transactions on Control of Network Systems.

[7]  Parinaz Naghizadeh Ardabili,et al.  Inter-temporal incentives in security information sharing agreements , 2016, 2016 Information Theory and Applications Workshop (ITA).

[8]  Pravin Varaiya,et al.  Stochastic Systems: Estimation, Identification, and Adaptive Control , 1986 .

[9]  W. Marsden.  I and J , 2012 .

[10]  Dirk Bergemann,et al.  Information Acquisition and Efficient Mechanism Design , 2000 .

[11]  Marc Lelarge,et al.  Economic Incentives to Increase Security in the Internet: The Case for Insurance , 2009, IEEE INFOCOM 2009.

[12]  Parinaz Naghizadeh Ardabili,et al.  Opting Out of Incentive Mechanisms: A Study of Security as a Non-Excludable Public Good , 2016, IEEE Transactions on Information Forensics and Security.

[13]  Lin Chen,et al.  A Game Theoretical Framework on Intrusion Detection in Heterogeneous Networks , 2009, IEEE Transactions on Information Forensics and Security.

[14]  Eitan Altman,et al.  Decentralized Protection Strategies Against SIS Epidemics in Networks , 2014, IEEE Transactions on Control of Network Systems.

[15]  Jean C. Walrand,et al.  How Bad Are Selfish Investments in Network Security? , 2011, IEEE/ACM Transactions on Networking.

[16]  Tilman Börgers,et al.  An introduction to the theory of mechanism design , 2015 .

[17]  Parinaz Naghizadeh Ardabili,et al.  On the Role of Public and Private Assessments in Security Information Sharing Agreements , 2016, ArXiv.

[18]  Eitan Altman,et al.  A dynamic game solution to malware attack , 2011, 2011 Proceedings IEEE INFOCOM.

[19]  Ali Kakhbod,et al.  An Efficient Game Form for Unicast Service Provisioning , 2009, IEEE Transactions on Automatic Control.

[20]  George J. Pappas,et al.  Analysis and Control of Epidemics: A Survey of Spreading Processes on Complex Networks , 2015, IEEE Control Systems.

[21]  Radha Poovendran,et al.  Optimal Jamming Attacks and Network Defense Policies in Wireless Sensor Networks , 2007, IEEE INFOCOM 2007 - 26th IEEE International Conference on Computer Communications.

[22]  Yang Xiao,et al.  Game Theory for Network Security , 2013, IEEE Communications Surveys & Tutorials.

[23]  Frank Kelly,et al.  Rate control for communication networks: shadow prices, proportional fairness and stability , 1998, J. Oper. Res. Soc..

[24]  Richard P. McLean,et al.  FULL EXTRACTION OF THE SURPLUS IN BAYESIAN AND DOMINANT STRATEGY AUCTIONS , 1988 .

[25]  Ilya Segal,et al.  An Efficient Dynamic Mechanism , 2013 .