A Factored MDP Approach to Optimal Mechanism Design for Resilient Large-Scale Interdependent Critical Infrastructures

Enhancing the security and resilience of interdependent infrastructures is crucial. In this paper, we establish a theoretical framework based on Markov decision processes(MDPs) to design optimal resiliency mechanisms for interdependent infrastructures. We use MDPs to capture the dynamics of the failure of constituent components of an infrastructure and their cyber-physical dependencies. Factored MDPs and ap- proximate linear programming are adopted for an exponentially growing dimension of both state and action spaces. Under our approximation scheme, the optimally distributed policy is equivalent to the centralized one.