Three Essays on the Law and Economics of Information Technology Security
Majuca, Ruperto Pagaura
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https://hdl.handle.net/2142/85579
Description
Title
Three Essays on the Law and Economics of Information Technology Security
Author(s)
Majuca, Ruperto Pagaura
Issue Date
2006
Doctoral Committee Chair(s)
Thomas Ulen
Department of Study
Economics
Discipline
Economics
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Keyword(s)
Computer Science
Language
eng
Abstract
In Chapter 4, we study a model where cybercrimes are addressed through a combination of private and public measures, as well as study the public goods and externalities aspects of Internet security. We find that the socially-optimal level of security is achieved by equalizing the marginal-benefit-to-marginal-cost ratios of the different security measures. The interrelatedness of Internet risks causes firms to underinvest in private and public security goods. The government decidedly lowers the level of police expenditures to induce firms to invest in more precautions. Under certain conditions, cooperation results in socially-optimal levels of private and public security goods expenditures.
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