Anthony J. Pennings, PhD

WRITINGS ON AI POLICY, DIGITAL ECONOMICS, ENERGY STRATEGIES, AND GLOBAL E-COMMERCE

Analyzing the Economics of Asymmetric Robotic Drone Warfare

Posted on | September 1, 2025 | No Comments

I’ve been intrigued by the asymmetric conflicts in Ukraine and Yemen these last few years. The introduction of low-cost drones and missiles has threatened established powers and the protection of global maritime trade. They are increasingly important topics in my classes, especially Engineering Economics, ICT for Sustainable Development, and Sensing Technologies for Disaster Risk Reduction.

Asymmetric warfare is conflict between two opposing sides with significantly different military capabilities, power, and tactics. It often involves weaker forces employing unconventional methods, such as guerrilla tactics, terrorism, or hit-and-run attacks, to exploit the strengths of their powerful adversary, thereby prolonging the conflict and challenging traditional warfare norms.

While this type of conflict typically involves a state actor versus a non-state actor, such as insurgents or resistance militias operating within controlled territory, the development of robotic drone-based warfare suggests scenarios that will likely continue to pit smaller state actors against larger ones (asymmetric) with established legacy military capabilities.

The major categories of robotic drones in warfare are best understood by their operational domains, such as air, land, sea surface, and underwater, and then by their primary mission function. These systems range from small, hand-launched vehicles to massive autonomous ships and submarines, fundamentally reshaping the modern battlefield. They are organized in the following categories:

Uncrewed Aerial Vehicles (UAVs) / Air Drones
Uncrewed Surface Vessels (USVs) / Sea Drones
Uncrewed Underwater Vessels (UUVs) / Submarine Drones
Uncrewed Ground Vehicles (UGVs) / Land Drones
Swarms and AI-Driven Systems

The best way to research the economics of asymmetric warfare using robotic drones is to employ a Cost-Imposition Framework. This approach analyzes the conflict not just as a military engagement, but as a form of economic warfare where the primary goal of the weaker actor is to force the stronger actor to spend a disproportionate amount of resources on defense.

The research should be structured into at least three parts. One is analyzing the inferior actor’s costs, the second addresses the superior actor’s costs, and then finally modeling the interaction between the two actors.

Implementing a Cost-Imposition Framework

At its core, the economic asymmetry in drone warfare is about imposing unsustainable costs on the adversary. A weaker actor uses extremely low-cost, often commercially available drones to create damage and threats that extremely high-cost, sophisticated defense systems must counter.

The key metric is the cost-exchange ratio. This ratio compares the attacker’s cost to achieve an effect versus the defender’s cost to prevent it. It measures the incremental cost to the aggressor of obtaining one additional offensive device that bypasses a defense shield. A relevant example is a $1000 UAV modified to carry a grenade, forcing a state military to fire a $2 million air defense missile to intercept it. This attack results in a catastrophic economic loss for the defender, even in the event of a successful interception.

Part 1 – Economics of the Inferior Actor (The Attacker)

The research should quantify the full “attack stack” of coordinated vehicles of the weaker side, which is defined by its overall low cost, adaptability, and strategic impact. Accounting should encompass the full range of unconventional weapons available, including guerrilla warfare, terrorism, cyberattacks, and other methods that exploit a superior opponent’s weaknesses.

This research would expand into human capital, procurement and supply chains, and research and development. Human capital involves quantifying the low cost of training operators, who often only require skills comparable to those of a video gamer, and the minimal organizational overhead of deploying decentralized cells. Procurement and supply chain dynamics encompass analyzing the costs of sourcing commercial-off-the-shelf (COTS) drones from platforms like AliExpress, 3D printing components, and adapting simple munitions. Research the illicit supply chains used to acquire these parts.

Research and development is another crucial area to examine. The “R&D” is often just rapid, low-cost tinkering and experimentation. Failure is relatively inexpensive, allowing for a significantly faster military innovation cycle where new technologies, tactics, and organizational methods are developed, tested, and adopted, progressing from conceptualization to widespread implementation and eventual obsolescence.

Part 2 – Economics of the Superior Actor (The Defender?)

The research must then analyze the defender’s cost structure, which is often characterized by high expense and slow adaptation. This examination would encompass procurement and operational costs, research and development, as well as indirect costs.

Procurement and operational costs include the multi-billion dollar price tags for dedicated air defense systems (radars, interceptors like the Patriot or Iron Dome) and the high cost of each interceptor fired. It also includes the personnel and maintenance costs required to operate these systems 24/7.

“R&D” in this case involves the massive, multi-year, and often trillion-dollar state investment in developing specialized counter-UAV technologies like lasers, directed energy weapons, and AI-driven detection systems.

Indirect economic costs can involve critical variables. The model must include the massive secondary costs of a successful or even an attempted attack, such as the economic impact of shutting down an airport, damaging critical infrastructure like a bridge or oil refinery, or the cost of deploying security measures to protect civilian areas.

Part 3 – Modeling and Synthesis

The final step is to synthesize the data into a comparative model to answer key economic questions. This synthesis involves data collection and financial modeling. Gather real-world cost data from recent conflicts in Ukraine, Syria, and Yemen for specific drone technologies and the interceptors used against them. Build a modelling system that allows a comparison of the cost-to-attack versus the cost-to-defend under various scenarios.

Summary and Recommendations

This post describes how asymmetric warfare, a conflict between actors with vastly different capabilities, is being reshaped by robotic drones. It proposes a Cost-Imposition Framework to analyze this conflict as a form of economic warfare. The core idea is that a weaker actor can use cheap, adaptable, and commercially sourced drones (across air, land, and sea) to force a militarily superior actor to spend disproportionately large sums on high-tech defenses.

The key metric for this analysis is the “cost-exchange ratio,” which compares the low cost of an attack (e.g., a $500 drone) to the high cost of defense (e.g., a $3 million missile). The research involves a three-part process: analyzing the low-cost structure of the attacker, the high-cost structure of the defender, and finally, synthesizing the data in a comparative model.

Suggested Model for the Final Step

An effective model to fulfill the final step of synthesizing the data and answering the key research questions is an Agent-Based Model (ABM). An ABM is a computational simulation that models the actions and interactions of autonomous agents (both individuals and collective entities) to see what effects they have on the system as a whole. It is suited for this problem because it can directly simulate the economic and tactical interplay between numerous, distinct assets.

Citation APA (7th Edition)

Pennings, A.J. (2025, Sep 1) Analyzing the Economics of Asymetric Robotic Drone Warfare. apennings.com https://apennings.com/digital-geography/analyzing-the-economics-of-asymetric-robotic-drone-warfare/

Note: Chat GPT and Gemini were used for parts of this post.

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Not to be considered financial advice.



AnthonybwAnthony J. Pennings, PhD is a Professor at the Department of Technology and Society, State University of New York, Korea and a Research Professor for Stony Brook University. He teaches AI and engineering economics. From 2002-2012 he taught comparative political economy, digital economics, and information systems management at New York University. He also taught in the Digital Media MBA at St. Edwards University in Austin, Texas, where he lives when not in Korea.

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    Professor (full) at State University of New York (SUNY) Korea since 2016. Research Professor for Stony Brook University. Moved to Austin, Texas in August 2012 to join the Digital Media Management program at St. Edwards University. Spent the previous decade on the faculty at New York University teaching and researching information systems, digital economics, and global political economy

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