Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: Optimal Cyber-Insurance Contract Design for Dynamic Risk Management and
  Mitigation   With the recent growing number of cyberattacks and the constant lack of
effective defense methods, cyber risks become ubiquitous in enterprise
networks, manufacturing plants, and government computer systems.
Cyber-insurance provides a valuable approach to transfer the cyber risks to
insurance companies and further improve the security status of the insured. The
designation of effective cyber-insurance contracts requires the considerations
from both the insurance market and the dynamic properties of the cyber risks.
To capture the interactions between the users and the insurers, we present a
dynamic moral-hazard type of principal-agent model incorporated with Markov
decision processes, which are used to capture the dynamics and correlations of
the cyber risks as well as the user's decisions on the protections. We study
and fully analyze a case with a two-state two-action user under linear coverage
insurance, and we further show the risk compensation, Peltzman effect, linear
insurance contract principle, and zero-operating profit principle in this case.
Numerical experiments are provided to verify our conclusions and further extend
to cases of a four-state three-action user under linear coverage insurance and
threshold coverage insurance.

15
The categories of this paper are: nucl-ex
17
The categories of this paper are: q-fin
26
The categories of this paper are: bayes-an
10
The categories of this paper are: q-bio
21
The categories of this paper are: adap-org
16
The categories of this paper are: stat
30
The categories of this paper are: q-alg
19
The categories of this paper are: eess
29
The categories of this paper are: funct-an
6
The categories of this paper are: astro-ph
5
The categories of this paper are: gr-qc
28
The categories of this paper are: alg-geom
35
The categories of this paper are: mtrl-th
8
The categories of this paper are: hep-ex
33
The categories of this paper are: plasm-ph
7
The categories of this paper are: hep-th