A New Framework to Quantifying the Economic Impacts of Cyberattacks on Aviation Systems: A Korean Game-Theoretic Interregional Economic Model

  • JiYoung ParkEmail author
  • Minsu Son
  • Ha Hwang
  • Dongin Cho
  • Changkeun Park
Part of the New Frontiers in Regional Science: Asian Perspectives book series (NFRSASIPER, volume 25)


This study suggests a framework quantifying a cyberattack on the Korean airport security system. Recent cyberattacks on nuclear power plants in South Korea and a serious cyberattack on Sony Pictures in the USA indicate possible invasion to an airport electronic system because the invasion would not have any border or entry point. Korea governments must consider this complex process that may cause turmoil once occurred. This complicated situation highlights the need for improved intergovernmental collaboration within the Korean territory. First, to avoid cyberterrorist threats, it is essential to coordinate intergovernmental network closely. Designing this network should consider delivering both a competitive game between attackers and defenders and a cooperative game between governments. Second, because an airport shutdown that is only located in a certain area would cause ripple impacts throughout other domestic (and international) economies, the Korean interregional input–output model should be combined to capture this type of ripple impacts. A new framework suggested as the Korean game-theoretic interregional economic model contributes to understanding strategies in cyberterror security and identifying the probabilistic economic costs on a South Korean airport closure by place of event and by type of industry. Using the identified equilibrium strategies for the Korean airport protection, a general guideline to evaluate resource allocation can be passed onto the South Korean government agencies.


Cyberattack Airport security Game theory Interregional input–output model The Korean game-theoretic interregional economic model 


  1. Adger, W. Neil. 2000. Social and ecological resilience: Are they related? Progress in Human Geography 24(3): 347–364.CrossRefGoogle Scholar
  2. AFP. 2010. Airliners fly in face of cyber attack scares: What would happen if all those screens tracking all those flights suddenly went blank? November 3, 2010. Available at . Accessed Dec 2012.
  3. Benkler, Y. 2011a. The penguin and the leviathan: The Triumph of cooperation over self-interest. New York: Crown Business.Google Scholar
  4. Benkler, Y. 2011b. The unselfish gene. Harvard Business Review 89(7–8): 76–85.Google Scholar
  5. Chenery, H.B. 1953. Regional analysis. In The structure and growth of the Italian economy, ed. H.B. Chenery, P.G. Clark, and V.C. Pinna, 98–139. Rome: US Mutual Security Agency.Google Scholar
  6. Doglow, M. 2012. Cyberwars reach a new frontier: The airport, August 15, 2012. Available at . Aaccessed Dec 2012.
  7. Federal Emergency Management Agency (FEMA). 1997. HAZUS®99 earthquake loss estimation methodology: User’s Manual.Google Scholar
  8. Frey, B.S., and S. Luechinger. 2003. How to fight terrorism: Alternatives to deterrence. Defence and Peace Economics 14(4): 237–249.CrossRefGoogle Scholar
  9. Frey, B.S., and S. Luechinger. 2004. Decentralization as a disincentive for terror. European Journal of Political Economy 20: 509–515.CrossRefGoogle Scholar
  10. Gordon, P., J.E. Moore II, J.Y. Park, and H.W. Richardson. 2007. The economic impacts of a terrorist attack on the US commercial aviation system. Risk Analysis 27(3): 505–512.CrossRefGoogle Scholar
  11. Gordon, P., J.E. Moore II, J.Y. Park, and H.W. Richardson. 2009. The economic costs of border closure: A state-by-state analysis. In Global business and the terrorist threat, ed. H.W. Richardson, P. Gordon, and J.E. Moore II, 341–374. Cheltenham: Edward Elgar.Google Scholar
  12. Hausken, K. 2004. Mutual raiding of production and the emergence of exchange. Economic Inquiry 42(4): 572–586.CrossRefGoogle Scholar
  13. Ignelzi, L. 2012. Hackers manipulated railway computers. TSA memo says. Accessed 10 June 2012.
  14. Isard, W. 1951. Interregional and regional input–output analysis: A model of a space economy. Review of Economics and Statistics 33: 318–328.CrossRefGoogle Scholar
  15. Isard, W. 1960. Methods of regional analysis: An introduction to regional science. Cambridge, MA: The MIT Press.Google Scholar
  16. Jack Faucett Associates, INC. 1983. The multiregional input–output accounts, 1977: Introduction and summary, Vol. I (Final Report). prepared for the US Department of Health and Human Services, Washington.Google Scholar
  17. Kakkar, M. 2011. CBI believes cyber attack led to IGI airport’s technical problems in June. September 25, 2011. Available at Accessed Dec 2012.
  18. Keohane, N.O., and R.J. Zeckhauser. 2003. The ecology of terror defense. The Journal of Risk and Uncertainty 26: 201–229.CrossRefGoogle Scholar
  19. Koscher, K., A. Czeskis, F. Roesner, S. Patel, T. Kohno, S. Checkoway, D. McCoy, B. Kantor, D. Anderson, H. Shacham, and S. Savage. 2011. Experimental security analysis of a modern automobile. In IEEE Symposium on Security and Privacy, eds. D. Evans and G. Vigna. IEEE Computer Society, May 2010.Google Scholar
  20. McCain, R.A. 2009. Game theory and public policy. Cheltenham: Edward Elgar.CrossRefGoogle Scholar
  21. McDaniels, T., S. Chang, D. Cole, J. Mikawoz, and H. Longstaff. 2008. Fostering resilience to extreme events within infrastructure systems: characterizing decision contexts for mitigation and adaptation. Global Environmental Change 18(2): 310–318.CrossRefGoogle Scholar
  22. MOLIT. 2014. 2013 Status of urban planning statistics. Ministry of Land Infrastructure and Transport (MOLIT) (in Korean).Google Scholar
  23. Moses, L.N. 1955. The stability of interregional trading patterns and input–output analysis. American Economic Review 45: 803–832.Google Scholar
  24. Nowak, M., and R. Highfield. 2011. SuperCooperators: Altruism, evolution, and why we need each other to succeed. New York: Free Press.Google Scholar
  25. Oxford Economics. 2008. Aviation: The real world wide web. Available at Accessed 8 July 2016.
  26. Park, J.Y. 2008. The economic impacts of a dirty- bomb attack on the Los Angeles and Long Beach port: Applying supply-driven NIEMO (National Interstate Economic Model). Journal of Homeland Security and Emergency Management 5(1). doi: 10.2202/1547-7355.1312.
  27. Park, J.Y. 2009. Application of a price-sensitive supply-side input–output model to an examination of the economic impacts of hurricane Katrina and Rita disruptions of the US oil-industry, presented at the 46th annual meeting of Southern regional science association. Charleston, South Carolina, March 29–31.Google Scholar
  28. Park, J.Y. 2015. Preparedness of risk society in catastrophic disasters. Monthly territory 8, KRIHS, 6–13 (in Korean).Google Scholar
  29. Park, J.Y., P. Gordon, J.E. Moore II, H.W. Richardson, and L. Wang. 2007. Simulating the state-by-state effects of terrorist attacks on three major US Ports: Applying NIEMO (national interstate economic model). In The economic costs and consequences of terrorism, ed. H.W. Richardson, P. Gordon, and J.E. Moore II, 208–234. Cheltenham: Edward Elgar.Google Scholar
  30. Park, J.Y., P. Gordon, J.E. Moore II, and H.W. Richardson. 2008a. The state-by-state economic impacts of the 2002 shutdown of the Los Angeles-long beach ports. Growth and Change 39(4): 548–572.CrossRefGoogle Scholar
  31. Park, J.Y., P. Gordon, J.E. Moore II, H.W. Richardson, S. Kim, and Y. Kim. 2008b. Estimating the state-by-state economic impacts of hurricane Katrina. In Natural disaster analysis after hurricane Katrina, ed. H.W. Richardson, P. Gordon, and J.E. Moore II, 147–186. Cheltenham: Edward Elgar.Google Scholar
  32. Park, J.Y., P. Gordon, E. Jun, J.E. Moore II, and H.W. Richardson. 2009. Identifying the regional economic impacts of 9/11. Peace Economics, Peace Science and Public Policy 15(2). doi: 10.2202/1554-8597.1162.
  33. Park, J.Y., J. Cho, and A. Rose. 2011. Modeling a major source of economic resilience to disasters: Recapturing lost production. Natural Hazards 58(1): 163–182.CrossRefGoogle Scholar
  34. Park, J.Y., P. Gordon, Y.K. Kim, J.E. Moore II, and H.W. Richardson. 2016. The temporal regional economic impacts of a hurricane disaster on oil refinery operations: A flexNIEMO approach. In Improving homeland security decisions, Forthcoming, eds. A. Abbas, M. Tambe, and D. von Winterfeldt. New York: Cambridge University Press.Google Scholar
  35. Perrow, C. 2006. Shrink the targets continued. Spectrum 43(9): 46–49.CrossRefGoogle Scholar
  36. Polenske, Karen R. 1980. The US multiregional input–output accounts and model. Lexington: DC Health.Google Scholar
  37. Poole, R.W. 2007. Airport security: Time for a new model. In The economic costs and consequences of terrorism, ed. H.W. Richardson, P. Gordon, and J.E. Moore II, 67–97. Cheltenham: Edward Elgar.Google Scholar
  38. Richardson, H.W., P. Gordon, and J.E. Moore II (eds.). 2007. The economic costs and consequences of terrorism. Cheltenham: Edward Elgar.Google Scholar
  39. Richardson, H.W., J.Y. Park, J.E. Moore II, and Q. Pan (eds.). 2014. National economic impact analysis of terrorist and natural disasters. Cheltenham: Edward Elgar.Google Scholar
  40. Richardson, H.W., Q. Pan, J.Y. Park, and J.E. Moore II (eds.). 2015. Regional economic impacts of terrorist attacks, natural disasters and metropolitan policies (advances in spatial science). Cham: Springer.Google Scholar
  41. Rose, A. 2004. Defining and measuring economic resilience to disasters. Disaster Prevention and Management 13(4): 307–314.CrossRefGoogle Scholar
  42. Rose, A. 2007. Economic resilience to natural and man-made disasters: Multidisciplinary origins and contextual dimensions. Environmental Hazards 7(4): 383–398.CrossRefGoogle Scholar
  43. Rose, A., and D. Lim. 2002. Business interruption losses from natural hazards: Conceptual and methodological issues in the case of the Northridge earthquake. Global Environmental Change Part B: Environmental Hazards 4(1): 1–14.CrossRefGoogle Scholar
  44. Rose, A., G. Oladosu, and S. Liao. 2007. Business interruption impacts of a terrorist attack on the electric power system of Los Angeles: Customer resilience to a total blackout. Risk Analysis 27(3): 513–531.CrossRefGoogle Scholar
  45. Rose, A., G. Oladosu, B. Lee, and G.B. Asay. 2009. The economic impacts of the september 11 terrorist attacks: A computable general equilibrium analysis. Peace Economics, Peace Science and Public Policy 15(2). doi: 10.2202/1554-8597.1161.
  46. Sandler, T. and D.G. Arce M. 2003. Pure public goods versus commons: Benefit-cost duality. Land Economics, University of Wisconsin Press 79(3):355–368.Google Scholar
  47. Skaperdas, S. 1996. Contest success functions. Economic Theory 7(2): 283–290.CrossRefGoogle Scholar
  48. Tafoya, W.L. 2011. Cyber terror. FBI law enforcement bulletin, November. Available at . Accessed Dec 2012.
  49. Zhuang, J., and V. Bier. 2007. Balancing terrorism and natural disasters—Defensive strategy with endogenous attacker effort. Operations Research 55(5): 976–991.CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media Singapore 2016

Authors and Affiliations

  • JiYoung Park
    • 1
    Email author
  • Minsu Son
    • 2
  • Ha Hwang
    • 1
  • Dongin Cho
    • 1
  • Changkeun Park
    • 3
  1. 1.Department of Urban and Regional PlanningUniversity at Buffalo, The State University of New YorkBuffaloUSA
  2. 2.Program in Regional Information, Department of Agricultural Economics and Rural DevelopmentSeoul National UniversitySeoulSouth Korea
  3. 3.Department of Agricultural and Applied EconomicsUniversity of GeorgiaAtlantaUSA

Personalised recommendations