| Economics Of Security |
Article Index for Economics Of |
Website Links For Economics |
Information AboutEconomics Of Security |
| CATEGORIES ABOUT ECONOMICS OF SECURITY | |
| information, knowledge, and uncertainty | |
| risk | |
| cognitive science | |
| information science | |
| computer security | |
| social sciences | |
| society | |
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Economics of security addresses a core question: why do agents choose technical risks when there exists technical solutions to mitigate security and privacy risks? Economics addresses not only this question, but also inform design decisions in Security Engineering . EMERGENCE OF ECONOMICS OF SECURITY National Security is the canonical Public Good . The economic status of information security came to the intellectual fore around 2000. As is the case with innovations it arose simultaneously in multiple venues. In 2000, the scientists at the Computer Emergency Response Team at Carnegie Mellon University proposed an early mechanism for risk assessment. The Hierarchical Holographic Model provided the first multi-faceted evaluation tool to guide security investments using the science of risk. Since that time, CERT has developed a suite of systematic mechanism for organizations to use in risk evaluations, depending on the size and expertise of the organization: OCTAVE . The study of computer security as an investment in risk avoidance has become standard practice. Also in 2000 at Harvard, Camp at the School of Government and Wolfram in the Department of Economics argued that security is not a s. In 2001, for adoption and diffusion. Also in 2001, in an unrelated development, Larry Gordon and Marty Leob published A framework on using information security as a response to competitor analysis systems . These professor of Maryland's Smith School of Business examined the strategic use of security information from a classical business perspective. The authors came together to develop and expand a series of flagship events under the name Worksop on the Economics of Information Security. EXAMPLES OF FINDINGS IN ECONOMICS OF SECURITY Proof of work is a security technology designed to stop spam by altering the economics. An early paper in economics of information security argued that Proof Of Work cannot work. In fact, the finding was that Proof Of Work cannot work without Price Discrimination as illustrated by a later paper, Proof of Work can Work . Another finding, one that is critical to an understanding of current American data practices, is that the opposite of and illustrates that what may appear as information pathology in collection of data is in fact rational organizational behavior. Hal Varian presented three models of security using the metaphor of the height of walls around a town to show security as a normal good, public good, or good with externalities. Free riding is the end result, in any case. EXTERNAL LINKS
Centers that study economics of security
Resources in economics of security
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