How loss profiles reveal behavioural biases in interdependent security decisions
by Alan Nochenson; Jens Grossklags; C.F. Larry Heimann
International Journal of Internet Technology and Secured Transactions (IJITST), Vol. 5, No. 2, 2014

Abstract: Most current models of interdependent security decision-making do not explicitly account for the concept of variable loss. In these models, entities either incur some fixed loss when infected or they do not - there is no in-between. Contrary to this, there are a large number of scenarios where the eventual harm caused by a successful attack might vary substantially (e.g., if a web server is attacked, it could be taken offline, it could be used to host illegal content, or it could be used as part of a botnet). This paper introduces the concept of a loss profile in order to capture the notion of variable loss. We exemplify our approach by modelling a simple interdependent network security scenario. We further show how behavioural biases such as ignorance to low probability events, can be effectively modelled with the concept of loss profiles.

Online publication date: Wed, 10-Sep-2014

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