The Market Consequences of Cybersecurity: Difference between revisions
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'''Outline:''' | '''Outline:''' | ||
Three major categories of externalities | Three major categories of externalities | ||
Category 1: No externalities; market participants absorb all the | Category 1: No externalities; market participants absorb all the costs of their security decisions. | ||
costs of their security decisions. | Category 2: Externalities are created, but they are borne by agents that can manage them. | ||
Category 2: Externalities are created, but they are borne by agents | |||
that can manage them. | |||
The ISP example | The ISP example | ||
The case of online financial services | The case of online financial services | ||
Category 3: Externalities are borne fully by other market | Category 3: Externalities are borne fully by other market participants or by society at large. | ||
participants or by society at large. | |||
The case of lax security by end users | The case of lax security by end users | ||
Distributional and efficiency effects | Distributional and efficiency effects | ||
Survey results on the costs of malware | Survey results on the costs of malware | ||
Key findings | Key findings | ||
Revision as of 12:01, 9 June 2010
Full Title of Reference
The Market Consequences of Cybersecurity: Defining Externalities and Ways to Address Them
Full Citation
OECD, The Market Consequences of Cybersecurity: Defining Externalities and Ways to Address Them, in Computer Viruses and Other Malicious Software (OECD, 2009). Purchase
Categorization
Issues: Economics of Cybersecurity
Key Words
internet service providers, malware, risk management
Synopsis
This chapter asks the following questions: Are participants in the information and communication markets responding adequately to malware, or are improvements possible? Pointing to a variety of reports that show increases in malicious attack trends, one might conclude that markets are not responding adequately. The analysis revealed a more nuanced picture.
Additional Notes and Highlights
Outline:
Three major categories of externalities
Category 1: No externalities; market participants absorb all the costs of their security decisions.
Category 2: Externalities are created, but they are borne by agents that can manage them.
The ISP example
The case of online financial services
Category 3: Externalities are borne fully by other market participants or by society at large.
The case of lax security by end users
Distributional and efficiency effects
Survey results on the costs of malware
Key findings