The Adversarial Discount -- AI, Signal Correlation, and the Cybersecurity Arms Race
Contest-theoretic modeling reveals how AI amplification creates asymmetric advantages favoring attackers in multi-surface enterprise environments.
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arXiv:2605.04336v2 Announce Type: replace-cross Abstract: We study a contest-theoretic model of adversarial investment in which an attacker and a defender allocate resources to AI-augmented capabilities across multiple attack surfaces. The attacker's investment operates through two channels: it amplifies offensive potency unconditionally and erodes defensive effectiveness conditionally, generating an adversarial discount that deepens endogenously with the defender's own investment. We derive a
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