Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/53369 
Authors: 
Year of Publication: 
2011
Series/Report no.: 
Nota di Lavoro No. 43.2011
Publisher: 
Fondazione Eni Enrico Mattei (FEEM), Milano
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.
Subjects: 
Network Interdiction
Noncooperative Game of Flow
Nash Equilibrium
Power Law
Kalai-Zemel Game of Flow
JEL: 
C72
D85
H56
Document Type: 
Working Paper

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