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Countering Hidden-action Attacks on Networked Systems

TitleCountering Hidden-action Attacks on Networked Systems
Publication TypeConference Paper
Year of Publication2005
AuthorsMoore, T
Conference NameWEIS'05. Fourth Workshop on the Economics of Information Security
Date Published06/2005
Conference LocationCambridge, England
Keywordsasymmetric information, computer security, decentralized, economics, information security, moral hazard, social capital

We define an economic category of hidden-action attacks: actions made attractive by a lack of observation. We then consider its implications for computer systems. Rather than structure contracts to compensate for incentive problems, we rely on insights from social capital theory to design network topologies and interactions that undermine the potential for hidden-action attacks.