Computing Nash Equilibria in Generalized Interdependent Security Games

We study the computational complexity of computing Nash equilibria in generalized interdependent-security (IDS) games. Like traditional IDS games, originally introduced by economists and risk-assessment experts Heal and Kunreuther about a decade ago, generalized IDS games model agents' voluntary investment decisions when facing potential direct risk and transfer-risk exposure from other agents. A distinct feature of generalized IDS games, however, is that full investment can reduce transfer risk. As a result, depending on the transfer-risk reduction level, generalized IDS games may exhibit strategic complementarity (SC) or strategic substitutability (SS). We consider three variants of generalized IDS games in which players exhibit only SC, only SS, and both SC+SS.