Journal
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
Volume 192, Issue 1, Pages 198-208Publisher
ELSEVIER
DOI: 10.1016/j.ejor.2007.09.001
Keywords
Risk analysis; Game theory; Resource allocation
Funding
- Israel Ministry of Industry, Commerce and Employment
Ask authors/readers for more resources
Probabilistic uncertainty is caused by chance, whereas strategic uncertainty is caused by an adverse interested party. Using linear impact functions, the problems of allocating a limited resource to defend sites that face either probabilistic risk or strategic risk are formulated as optimization problems that are solved explicitly. The resulting optimal policies differ - under probabilistic risk, the optimal policy is to focus the investment of resources on priority sites where they yield the highest impact, while under strategic risk, the best policy is to spread the resources so as to decrease the potential damage level of the most vulnerable site(s). Neither solution coincides with the commonly practiced proportionality allocation scheme. (C) 2007 Elsevier B.V. All rights reserved.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available