The Economic Costs and Implications of High-Technology Hardware Theft

by Dertouzos, James N.; Larson, Eric V.; Ebener, Patricia A.

• ISBN13: 9780833027276
• ISBN10: 0833027271
• Format: Paperback
• Copyright: 1999-04-14
• Publisher: RAND Corporation

Summary

Results of a 9 month survey of 95 firms on hardware theft.

Table of Contents

Preface	iii
Figures	vii
Tables	ix
Executive Summary	xi
Acknowledgments	xix
Acronyms	xxi
Introduction	1	(6)
Background	1	(2)
The Many Dimensions of High-Tech Hardware Theft	3	(1)
Method	4	(1)
Organization of This Report	5	(2)
The Direct Costs of High-Tech Hardware Theft	7	(10)
Estimate of Industry Direct Losses	7	(2)
Key Patterns in the Loss Data	9	(6)
Losses by Value	9	(1)
Losses by Product Category	10	(2)
Thefts by Incident Scenario	12	(1)
Geographic Patterns	13	(1)
Location of Thefts	14	(1)
Predicting Company Loss Experiences	15	(2)
The Indirect Costs of High-Tech Hardware Theft	17	(12)
Displaced Demand, or Lost Sales	18	(1)
Security Investments and Insurance	19	(1)
Pricing Increases Due to Increased Costs	20	(1)
Effects on Manufacturers of Thefts from Final Business Customers	20	(1)
Simulating the Effects of Indirect Costs	21	(5)
Second-Order Effects of Hardware Theft	26	(3)
Returns on Security Investments	29	(4)
Summary of Findings and Policy Conclusions	33	(28)
Summary of Findings	33	(3)
Policy Conclusions	36	(5)
Policy Implications for Firms	36	(2)
Policy Implications for Industry	38	(1)
Policy Implications for Society	39	(2)
Appendix
A. Overview of Theft Incident Reporting System (TIRS) and Data Collection Protocols	41	(8)
B. Models of the Indirect Costs of Theft	49	(10)
C. Statistical Analysis of Loss Patterns	59	(2)
Bibliography	61