Deterrence is a form of persuasion intended to manipulate the cost-benefit analysis of potential aggressors. Deterrence is more complex in the cyberspace than in physical domain because of the attribution dilemma. In this work, we use a game theoretic approach to formulate a cyber deterrence strategy. We derive and discuss the defender optimal security investment level, the attacker best-response effort level, and the key factors influencing each strategy.

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