This paper extends our earlier analysis of interdependent security issues to a general class of problems involving discrete interdependent risks with heterogeneous agents. There is a threat of an event that can only happen once, and the risk this poses to any one agent depends on actions taken...

New risks seem to be an unavoidable in a period of rapid change. The last few decades have brought us the risks of global warming, nuclear meltdown, ozone depletion, failure of satellite launcher rockets, collision of supertankers, AIDS and Ebola. A key feature of a new risk, as opposed to an...

This paper extends our earlier analysis of interdependent security issues to a general class of problems involving discrete interdependent risks with heterogeneous agents. There is a threat of an event that can only happen once, and the risk depends on actions taken by others. Any agent's...