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Who Should Pay for Interdependent Risk? Policy Implications for Security Interdependence Among Airports
Gabriel Kuper1, Fabio Massacci1, Woohyun Shim2
1University of Trento, Italy.
Risk Analysis : an Official Publication of the Society for Risk Analysis
|February 24, 2020
Summary
This study examines how interdependent security risks affect airports and policy. It finds that increased security interdependence can alter spending, societal costs, and financing fairness, offering insights for global policy.
Area of Science:
- Economics
- Game Theory
- Security Studies
Background:
- Organizations face interdependent security risks, especially with reactive adversaries.
- Airports are critical infrastructure with significant security interdependencies.
Purpose of the Study:
- To analyze the economic and policy implications of increasing security interdependence among airports.
- To investigate the impact of public policy on group security in interdependent networks.
Main Methods:
- Developed a game-theoretic framework to model security expenditures and societal costs.
- Derived Nash equilibrium and socially optimal solutions for airport networks.
- Conducted numerical experiments simulating real-world cyber scenarios.
Main Results:
- Assessed the impact of interdependence on airports' security spending, societal costs, and financing fairness.
- Identified how changes in interdependence affect equilibrium outcomes.
- Provided quantitative insights into security investment dynamics.
Conclusions:
- Security interdependence significantly influences economic and policy landscapes for critical infrastructure.
- Findings offer actionable insights for policymakers in the United States, Europe, and Asia.
- The study highlights the need for strategic policy interventions in managing interdependent security risks.
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