ACADEMIC ARTICLE SUMMARY
An Introduction to Key Themes in the Economics of Cyber-security
Article Source: in Cyber Warfare and Cyber Terrorism, Lech J. Janczewski and Andrew M. Colarik, eds., IGI Global, 2007, pp. 78-82
Publication Date:Time to Read: 1 minute read
This paper looks at how computer security problems like viruses are solved.
Markets are responding to develop solutions to computer security problems.
- Computer viruses and other software vulnerability can do billions of dollars in damage, but few computer users have updated virus protection.
- One economic factor that affects security is that users do not use enough protection, because some of the costs of viruses are borne by others.
- Another economic factor in security is “Network effects.” This means that a product becomes more valuable to a consumer when there are more other users. Microsoft software is more valuable because it is used by many people.
- Network effects make security problems worse, because many people tend to use the same product and it is vulnerable to the same problems.
- Markets have developed in cyber-security. Some firms pay users who detect and report software weaknesses. Software vendors are usually not involved.