In designing a new infrastructure system, or upgrading an old one, today’s realities dictate that we build a system that can handle gracefully the attacks of an intelligent adversary: Mother Nature, acting randomly, is no longer the only enemy. This talk begins by describing multi-stage Stackelberg games for formulating these problems: each is a multi-level optimization model with a model of optimal system operation at its core. New decomposition methods are then described for solution purposes, for example, “global Benders decomposition” and “scenario decomposition.” Examples cover electrical power grids, pipeline networks and bio-defense; the theory involves standard linear- and integer-programming concepts.
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