Abstract-The VCG-Kelly mechanism is proposed, which is obtained by composing the communication efficient, onedimensional signaling idea of Kelly with the VCG mechanism, providing efficient allocation for strategic buyers at Nash equilibrium points. It is shown that the revenue to the seller can be maximized or minimized using a particular one-dimensional family of surrogate valuation functions.

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Current practices for combating cyber attacks typically use Intrusion Detection Systems (IDSs) to detect and block multistage attacks. Because of the speed and impacts of new types of cyber attacks, current IDSs are limited in providing accurate detection while reliably adapting to new attacks. In signature-based IDS systems, this limitation is made apparent by the latency from day zero of an attack to the creation of an appropriate signature. This work hypothesizes that this latency can be shortened by creating signatures via anomaly-based algorithms. A hybrid supervised and unsupervised clustering algorithm is proposed for new signature creation. These new signatures created in real-time would take effect immediately, ideally detecting new attacks. This work first investigates a modified density-based clustering algorithm as an IDS, with its strengths and weaknesses identified. A signature creation algorithm leveraging the summarizing abilities of clustering is investigated. Lessons learned from the supervised signature creation are then leveraged for the development of unsupervised real-time signature classification. Automating signature creation and classification via clustering is demonstrated as satisfactory but with limitations.

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Current practice for combating cyber attacks typically use Intrusion Detection Sensors (IDSs) to passively detect and block multi-stage attacks. This work leverages Level-2 fusion that correlates IDS alerts belonging to the same attacker, and proposes a threat assessment algorithm to predict potential future attacker actions. The algorithm, TANDI, reduces the problem complexity by separating the models of the attacker's capability and opportunity, and fuse the two to determine the attacker's intent. Unlike traditional Bayesian-based approaches, which require assigning a large number of edge probabilities, the proposed Level-3 fusion procedure uses only 4 parameters. TANDI has been implemented and tested with randomly created attack sequences. The results demonstrate that TANDI predicts future attack actions accurately as long as the attack is not part of a coordinated attack and contains no insider threats. In the presence of abnormal attack events, TANDI will alarm the network analyst for further analysis. The attempt to evaluate a threat assessment algorithm via simulation is the first in the literature, and shall open up a new avenue in the area of high level fusion.