Cybersecurity as a Public Good What is a public good? · A public good is non-rivalrious, meaning use of the good does not reduce the amount available. · Public goods are non-excludable, there is no way to stop other people from receiving them. · Cost/benefit can be incurred without a transaction. You can have the benefit without the cost or vice versa. · Free-riding : occurrance without the transaction. Consuming more than the fair share of a public resources, or shoulder less than a fair share of the cost of its production. Whate are private good? · Private goods are rivalrous. Consumption reduces the amount of the good left for others. · Private goods are excludable, you can stop others from receiving them.
Is Cybersecurity a public good?
No. Is Cybersecurity as a condition? · Cybersecurity should be a condition available to everyone. · Major goal is to avoid cyber terrorism. Externalities · If financial institutions were attack that would have ripple effect on the nation. (Cyberterrorism) Reasons why it is not a public good? · If it is a public good, we will observer a market failure if they the private does not invest in cybersecurity. · Do companies invest in cybersecurity? Yes · Is to their beneift to invest in cybersecuirty? Yes Policy · Security events tend to be rare and castostroprophic. · Government regulation would be the solution to marketfailure. · Torte law (common law) – allowing for civil suites · Liability (which is favored) – holding the companies liable for damage · Market discover : you want to market test for threats and responds accordingly · Over regulation is reactive
What is a public good?
· A public good is non-rivalrious, meaning use of the good does not reduce the amount available.
· Public goods are non-excludable, there is no way to stop other people from receiving them.
· Cost/benefit can be incurred without a transaction. You can have the benefit without the cost or vice versa.
· Free-riding : occurrance without the transaction. Consuming more than the fair share of a public resources, or shoulder less than a fair share of the cost of its production.
Whate are private good?
· Private goods are rivalrous. Consumption reduces the amount of the good left for others.
· Private goods are excludable, you can stop others from receiving them.
Is Cybersecurity a public good?
No.
Is Cybersecurity as a condition?
· Cybersecurity should be a condition available to everyone.
· Major goal is to avoid cyber terrorism.
Externalities
· If financial institutions were attack that would have ripple effect on the nation. (Cyberterrorism)
Reasons why it is not a public good?
· If it is a public good, we will observer a market failure if they the private does not invest in cybersecurity.
· Do companies invest in cybersecurity? Yes
· Is to their beneift to invest in cybersecuirty? Yes
Policy
· Security events tend to be rare and castostroprophic.
· Government regulation would be the solution to marketfailure.
· Torte law (common law) – allowing for civil suites
· Liability (which is favored) – holding the companies liable for damage
· Market discover : you want to market test for threats and responds accordingly
· Over regulation is reactive