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In this paper, a novel cyber-insurance model design is proposed based on system risk evaluation with smart technology applications. The cyber insurance policy for power systems is tailored via cyber risk modeling, reliability impact…

Computer Science and Game Theory · Computer Science 2024-03-20 Pikkin Lau , Lingfeng Wang , Wei Wei , Zhaoxi Liu , Chee-Wooi Ten

Despite the success of demand response programs in retail electricity markets in reducing average consumption, the random responsiveness of consumers to price event makes their efficiency questionable to achieve the flexibility needed for…

Optimization and Control · Mathematics 2019-05-28 René Aïd , Dylan Possamaï , Nizar Touzi

This paper has a double aim. One the one hand, we introduce a uni-nodal network model for cyber risks with firewalled edges and SIR intra-edge spreading. In connection to this, we formulate an insurance problem in which one seeks the…

Optimization and Control · Mathematics 2025-11-11 Dan Goreac , Juan Li , Pangbo Wang

We study the classic principal-agent model when the signal observed by the principal is chosen by the agent. We fully characterize the optimal information structure from an agent's perspective in a general moral hazard setting with limited…

Theoretical Economics · Economics 2023-07-25 Majid Mahzoon , Ali Shourideh , Ariel Zetlin-Jones

The topic will focus on the U.S. Department of Defense strategy towards improving their network security defenses for the department and the steps they have taken at the agency level where components under DOD such as The Defense…

Computers and Society · Computer Science 2020-09-07 Christopher L Gorham

Agentic AI systems can plan, call tools, inspect code, interact with web applications, and coordinate multi-step workflows. These same capabilities change the economics of cyber offense. The central near-term risk is not that every…

Cryptography and Security · Computer Science 2026-05-11 Christopher Koch

Decentralized stochastic control problems with local information involve problems where multiple agents and subsystems which are coupled via dynamics and/or cost are present. Typically, however, the dynamics of such couplings is complex and…

Optimization and Control · Mathematics 2024-06-03 Zachary Selk , Serdar Yüksel

We study a decentralized dispatch coordination problem in a multi-agent supply chain setting with shared logistics capacity. We propose symmetric (identical) dispatch strategies for all agents, enabling efficient coordination without…

Multiagent Systems · Computer Science 2025-04-29 Sagar Sudhakara

Privacy is an essential issue in data trading markets. This work uses a mechanism design approach to study the optimal market model to economize the value of privacy of personal data, using differential privacy. The buyer uses a finite…

Computer Science and Game Theory · Computer Science 2021-12-24 Tao Zhang , Quanyan Zhu

Two-sided online matching platforms are employed in various markets. However, agents' preferences in the current market are usually implicit and unknown, thus needing to be learned from data. With the growing availability of dynamic side…

Machine Learning · Computer Science 2024-05-30 Yuantong Li , Chi-hua Wang , Guang Cheng , Will Wei Sun

Cyber networks are fundamental to many organization's infrastructure, and the size of cyber networks is increasing rapidly. Risk measurement of the entities/endpoints that make up the network via available knowledge about possible threats…

Systems and Control · Electrical Eng. & Systems 2025-01-29 Arda Bayer , David Maluf , Behnaam Aazhang

We consider a principal who wishes to screen an agent with \emph{discrete} types by offering a menu of \emph{discrete} quantities and \emph{discrete} transfers. We assume that the principal's valuation is discrete strictly concave and use a…

Theoretical Economics · Economics 2025-10-27 Alejandro Francetich , Burkhard C. Schipper

Incentives are more likely to elicit desired outcomes when they are designed based on accurate models of agents' strategic behavior. A growing literature, however, suggests that people do not quite behave like standard economic agents in a…

Computer Science and Game Theory · Computer Science 2014-06-09 Arpita Ghosh , Robert Kleinberg

An autonomous and resilient controller is proposed for leader-follower multi-agent systems under uncertainties and cyber-physical attacks. The leader is assumed non-autonomous with a nonzero control input, which allows changing the team…

Multiagent Systems · Computer Science 2018-04-10 Rohollah Moghadam , Hamidreza Modares

What type of delegation contract should be offered when facing a risk of the magnitude of the pandemic we are currently experiencing and how does the likelihood of an exogenous early termination of the relationship modify the terms of a…

Optimization and Control · Mathematics 2021-02-02 Jessica Martin , Stéphane Villeneuve

The problem of controlling multi-agent systems under different models of information sharing among agents has received significant attention in the recent literature. In this paper, we consider a setup where rather than committing to a…

Optimization and Control · Mathematics 2021-04-23 Sagar Sudhakara , Dhruva Kartik , Rahul Jain , Ashutosh Nayyar

Cybersecurity decision-making increasingly occurs in environments characterized by uncertainty, partial observability, and adversarial manipulation, where heterogeneous signals from multiple sources are often incomplete, ambiguous, or…

Cryptography and Security · Computer Science 2026-05-01 Andrei Kojukhov , Arkady Bovshover

Can a principal still offer optimal dynamic contracts that are linear in end-of-period outcomes when the agent controls a process that exhibits memory? We provide a positive answer by considering a general Gaussian setting where the output…

Optimization and Control · Mathematics 2022-09-23 Eduardo Abi Jaber , Stéphane Villeneuve

We study a variant of the principal-agent problem in which the principal does not directly observe the agent's effort outcome; rather, she gets a signal about the agent's action according to a variable information structure designed by a…

Computer Science and Game Theory · Computer Science 2024-09-06 Yakov Babichenko , Inbal Talgam-Cohen , Haifeng Xu , Konstantin Zabarnyi

Pricing insurance for risks associated with information technology systems presents a complex modelling challenge, combining the disciplines of operations management, security, and economics. This work proposes a socioeconomic modelling…

General Economics · Economics 2023-10-05 Henry Skeoch , David Pym