Case & Working Paper
| Paper Number | KCB-WP-2025-006 |
|---|---|
| Title | Robust Intervention in Networks |
| Title(Other) | |
| Author | Daeyoung Jeong Tongseok Lim Euncheol Shin |
| Publisher | KAIST College of Business |
| Abstract | In economic settings such as learning, social behavior, and financial contagion,
agents interact through interdependent networks. This paper examines how a decision maker (DM) can design an optimal intervention strategy under network uncertainty, modeled as a zero-sum game against an adversarial “Nature” that reconfigures the network within an uncertainty set. Using duality, we characterize the DM’s unique robust intervention and identify the worst-case network structure, which exhibits a rank-1 property, concentrating risk along the intervention strategy. We analyze the costs of robustness, distinguishing between global and local uncertainty, and examine the role of higher-order uncertainties in shaping intervention outcomes. Our findings highlight key tradeoffs between maximizing influence and mitigating uncertainty, offering insights into robust decision-making. This framework has applications in policy design, economic regulation, and strategic interventions in dynamic networks, ensuring their resilience against uncertainty in network structures. |
| Full-Text | * Full-Text 다운로드는 경영대학 학생에게만 제공되고 있습니다. |
Contact : Kim, HaengRan ( hrkim@business.kaist.ac.kr )
