Network design and defence

► A model of network design and defence is developed. ► Designer chooses linking and protection of nodes, Adversary chooses a subset of nodes to remove. ► Value of the network depends on its connectivity and sizes of components. ► If defence is used, the equilibrium networks are heterogeneous and either centrally of fully protected. ► If defence is not used, than equilibrium networks are more homogeneous and densely connected.