A Game Theory Model for Allocating Scarce Resources in Critical Infrastructure Protection

Richard E. Chappell II

Abstract

In this paper, we describe, implement and evaluate a process that tests the fault tolerance of a distributed system, and then applies behavioral game theory to evaluate specific resource allocation problems. Geographically dispersed power grid systems brings unique challenges in deciding where and how to protect assets. Model checking abstracts a system to a logical framework that can be tested for failures. Allocation strategies can then be derived from the comparison of individual elements. Level-k reasoning is then applied to discover iterative refinements to the allocation strategies, until a specific result is established. Case studies are presented that demonstrates how to apply this methodology to evaluate a system.