The Law And Economics Of Cybersecurity

by Edited by Mark F. Grady , Francesco Parisi

• ISBN13: 9780521855273
• ISBN10: 0521855276
• Format: Hardcover
• Copyright: 2005-11-28
• Publisher: Cambridge University Press

Summary

Cybersecurity is an increasing problem for which the market may fail to produce a solution. The ultimate source 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. 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 21st century problems created by information technology and the globalization of markets.

Table of Contents

Acknowledgments	vii
Contributors	viii
The Law and Economics of Cybersecurity: An Introduction	1	(12)
Mark Grady
Francesco Parisi
PART ONE: PROBLEMS
Cybersecurity and Its Problems
Private versus Social Incentives in Cybersecurity: Law and Economics	13	(16)
Bruce K. Kobayashi
A Model for When Disclosure Helps Security: What Is Different about Computer and Network Security?	29	(44)
Peter P. Swire
Intervention Strategies: Redundancy, Diversity and Autarchy
Peer Production of Survivable Critical Infrastructures	73	(42)
Yochai Benkler
Cybersecurity: Of Heterogeneity and Autarky	115	(28)
Randal C. Picker
PART TWO: SOLUTIONS
Private Ordering Solutions
Network Responses to Network Threats: The Evolution into Private Cybersecurity Associations	143	(50)
Amitai Aviram
The Dark Side of Private Ordering: The Network/Community Harm of Crime	193	(28)
Neal K. Katyal
Regulation and Jurisdiction for Global Cybersecurity
Holding Internet Service Providers Accountable	221	(38)
Doug Lichtman
Eric P. Posner
Global Cyberterrorism, Jurisdiction, and International Organization	259	(38)
Joel P. Trachtman
Index	297