I. Introduction
With the growth of mobile and sensor devices, embedded systems, and communication technologies, we are moving towards an era of pervasive computing. Pervasive computing is expected to create a revolution by providing services and functionalities that use the knowledge of surrounding physical places. The very knowledge that enables an application to provide better services and functionalities may however be misused causing security and privacy breaches. The problem is serious because pervasive computing applications typically involve interactions between a large number of entities that span different organizations. Uncontrolled disclosure of information or unconstrained interaction among entities may have extremely grave consequences. We need to understand what resources an entity has access to, which entities it should interact with, what information can be released to an entity, how to protect the information used or produced by an entity, which entities can be trusted and to what extent, and how these trust relationships change over time.