Individuals derive benefits from their connections, but these may, at the same time, transmit external threats. Individuals therefore invest in security to protect themselves. However, the incentives to invest in security depend on their network exposures. We study the problem of designing a...

Cyberattacks have risen to become one of the most critical global risks. Despite increasing investments to combat cyberattacks, there remains a significant, often unnoticed vulnerability: employees. Previous literature reveals that over two-thirds of cyberattacks within organizations result from...

Digital currencies store balances in anonymous electronic addresses. We analyze the trade-offs between safety and convenience of aggregating balances in addresses, electronic wallets and banks. In our model agents balance the risk of theft of a large account with the cost to safeguarding a large...