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An Attacker-defender Resource Allocation Game with Substitution and Complementary Effects.

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Homeland security resource allocation is optimized by considering substitution and complementary effects between human and capital resources. Failing to account for these can increase defender losses, especially with false beliefs.

Keywords:
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Area of Science:

  • Economics
  • Game Theory
  • Public Policy

Background:

  • Homeland security relies on substantial government funding for defense programs.
  • Existing game-theoretic models often overlook resource substitution and complementarity in defense allocation.
  • Real-world security investments involve human, land, and capital resources with interdependent effects.

Purpose of the Study:

  • To address the gap in understanding resource substitution and complementarity in homeland security.
  • To develop a game-theoretical model for optimal resource allocation considering joint effectiveness.
  • To analyze the impact of false beliefs on defense budget allocation.

Main Methods:

  • Sequential game-theoretical resource allocation model.
  • Development of three false belief models (defender-only, attacker-only, both).
  • Regression analysis to identify resource effects and belief impacts.

Main Results:

  • Significant substitution effects exist between human and capital resources.
  • Failure to consider resource interdependence increases defender losses.
  • Defender losses escalate when the attacker holds false beliefs about substitutes.
  • Lower losses occur when both parties hold false beliefs about complementary resources.

Conclusions:

  • Optimal homeland security resource allocation requires accounting for substitution and complementarity.
  • Defender strategies must adapt to potential false beliefs held by adversaries.
  • Resource effectiveness and substitutability guide optimal allocation decisions.