|
Abstract:
|
We present prescriptive optimization models that recommend an investment portfolio of defense options, each of which can reduce our vulnerability to some terrorist attack(s), or enable future mitigation actions for particular types of attack. Our models prescribe investments that minimize the maximum risk (i.e., expected damage) to which we are exposed. In our "Defend-Attack-Mitigate risk-minimization model" (a) we invest strategically in interdiction and/or mitigation options (for a bio-terror example, by inoculating health-care workers, or stockpiling a mix of emergency vaccines), (b) the attacker observes our investments and attacks as effectively as possible, and (c) we then optimally deploy the mitigation options that our investments have enabled.
|
