Externalities and the Magnitude of Cyber security Underinvestment by Private Sector Firms: A Modification of the Gordon-Loeb Model

Abstract

Cyber security breaches inflict costs to consumers and businesses. The possibility also exists that a cyber security breach may shut down an entire critical infrastructure industry, putting a nation’s whole economy and national defense at risk. Hence, the issue of cyber security investment has risen to the top of the agenda of business and government… (More)

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