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Cybersecurity is a leading national problem for which the market
may fail to produce a solution. The ultimate source of the problem
is that computer owners lack adequate incentives to invest in
security because they bear fully the costs of their security
precautions but share the benefits with their network partners. In
a world of positive transaction costs, individuals often select
less than optimal security levels. The problem is compounded
because the insecure networks extend far beyond the regulatory
jurisdiction of any one nation or even coalition of nations.
Originally published in 2006, this book brings together the views
of leading law and economics scholars on the nature of the
cybersecurity problem and possible solutions to it. Many of these
solutions are market based, but they need some help, either from
government or industry groups, or both. Indeed, the cybersecurity
problem prefigures a host of twenty-first-century problems created
by information technology and the globalization of markets.
Cybersecurity is a leading national problem for which the market
may fail to produce a solution. The ultimate source of the problem
is that computer owners lack adequate incentives to invest in
security because they bear fully the costs of their security
precautions but share the benefits with their network partners. In
a world of positive transaction costs, individuals often select
less than optimal security levels. The problem is compounded
because the insecure networks extend far beyond the regulatory
jurisdiction of any one nation or even coalition of nations.
Originally published in 2006, this book brings together the views
of leading law and economics scholars on the nature of the
cybersecurity problem and possible solutions to it. Many of these
solutions are market based, but they need some help, either from
government or industry groups, or both. Indeed, the cybersecurity
problem prefigures a host of twenty-first-century problems created
by information technology and the globalization of markets.
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