Contents	6
	Preface	8
	Acknowledgments	16
	SYSTEM RELIABILITY AND FREE RIDING	17
	1. Literature	18
	2. Notation	18
	3. Nash equilibria	19
	4. Social optimum	22
	5. Identical values, different costs	23
	6. Increasing the number of agents	23
	7. Fines and liability	24
	8. Sequential moves	27
	9. Adversaries	29
	10. Sum of efforts and weakest link	30
	11. Future work	30
	References	31
	PRICING SECURITY	32
	1. Security as an externality	33
	2. Existing measures	37
	3. Defining the good	40
	4. Allocating property rights	43
	5. Conclusions	47
	References	48
	CRYPTOGRAPHY AND COMPETITION POLICY – ISSUES WITH ‘TRUSTED COMPUTING’	50
	1. Trusted Computing	52
	2. Value to corporate and government users	55
	3. Value to content owners	57
	4. Value to hardware vendors	58
	5. Value to software vendors	59
	6. Conclusion and Scope for Future Work	63
	References	65
	HOW MUCH IS STRONGER DRM WORTH?	68
	References	72
	TRUSTED COMPUTING, PEER-TO-PEER DISTRIBUTION, AND THE ECONOMICS OF PIRATED ENTERTAINMENT	73
	1. Protecting Content	76
	2. Attacking Peer-to-Peer Distribution	78
	3. Defending Peer-to-Peer Distribution	80
	4. Conclusion	81
	Acknowledgments	81
	References	82
	ECONOMICS OF IT SECURITY MANAGEMENT	84
	1. An economics perspective to IT security management	86
	2. Assessing the total cost of security breaches	87
	3. Assessing the Value of Security Controls	89
	4. Effective level of investment	91
	5. Other economics-based IT security studies	93
	6. Conclusions and Future Research Directions	94
	References	95
	EVALUATING DAMAGES CAUSED BY INFORMATION SYSTEMS SECURITY INCIDENTS	97
	1. Cost of Information Security Incidents	97
	2. Threat-Agent Classification	100
	3. Threat Agent	103
	4. Techniques	103
	5. Risk Management System	104
	References	105
	THE ECONOMIC CONSEQUENCES OF SHARING SECURITY INFORMATION	107
	1. Introduction	107
	2. Economic Modelling	111
	3. Results	112
	4. Conclusion	114
	References	115
	THE ECONOMICS OF INFORMATION SECURITY INVESTMENT	117
	1. The Model	119
	2. How Vulnerability Affects the Optimal Level of Investment in information security	125
	3. Concluding Comments	133
	Acknowledgements	135
	References	135
	Appendix	138
	WHAT PRICE PRIVACY?	140
	1. The Meanings of Privacy	141
	2. Privacy People Pay For	142
	3. The Irrational Privacy Consumer: Selling your virtual self for a hamburger	143
	4. Analysis	146
	5. Default States	147
	6. Why Identity Theft is Not About Identity or Theft	148
	7. Infrastructure Cost	151
	8. Conclusion	152
	References	153
	WHY WE CAN’T BE BOTHERED TO READ PRIVACY POLICIES	154
	1. Related Work	155
	2. Privacy as a Lemons Market	156
	3. Privacy Signals	156
	4. Testing in the Lemons Market	158
	5. Conclusions and Future Directions	161
	Acknowledgements	163
	References	163
	IMPROVING INFORMATION FLOW IN THE INFORMATION SECURITY MARKET	165
	1. U. S. Defense Efforts to bring security information to the marketplace Early Years	166
	2. Globalization	171
	3. Conclusions and future directions	172
	References	173
	PRIVACY ATTITUDES AND PRIVACY BEHAVIOR	174
	1. Personal Information Security and Privacy: Attitudes versus Behavior	175
	2. Exploring the Dichotomy	177
	3. Factors Affecting the Rational Decision Process	179
	4. An Experimental Design	184
	References	185
	PRIVACY AND SECURITY OF PERSONAL INFORMATION	188
	1. On-line and Off-line Identities	189
	2. The Economics of On-line Identities	190
	3. The Economics of Off-line Identities	192
	4. Economics and Technology of Privacy	193
	References	194
	PRIVACY, ECONOMICS, AND PRICE DISCRIMINATION ON THE INTERNET	196
	1. The important role and prevalence of price discrimination	202
	2. Versioning and damaged goods	207
	3. The convergence of capitalism and communism	208
	4. Fairness, behavioral economics, and railroads	209
	5. 19th century railroad pricing revolution	210
	6. 19th century railroad pricing counterrevolution	212
	7. Transportation regulation and deregulation and general observations on pricing	214
	8. Overt or covert price discrimination?	216
	9. The many ways to skin a cat, or how to hide price discrimination	216
	10. Conclusions	217
	References	218
	WE WANT SECURITY BUT WE HATE IT	221
	1. Security and Society	224
	2. Surveillance at the supermarket	224
	3. Security as control or community infrastructure?	226
	4. Towards ‘Surveillance Computing’	226
	5. Beyond Privacy. Think different	228
	Notes	229
	References	230
	SECURITY AND LOCK-IN	232
	1. Theoretical Framework The Role of Security in Lock-In	233
	2. The US Cable Industry	240
	3. The Video Gaming and Printer Cartridge Industries	244
	4. Implications	247
	5. Conclusion	251
	Acknowledgements	252
	References	252
	HOW AND WHY MORE SECURE TECHNOLOGIES SUCCEED IN LEGACY MARKETS	254
	1. Background	255
	2. Analysis	255
	3. Secure File Transfer	257
	4. Conclusion	260
	Acknowledgements	261
	References	261
	COGNITIVE HACKING	262
	1. Background	262
	2. Examples of Cognitive Hacking	268
	3. Value of Information – Information Theoretic and Economic Models	277
	4. Cognitive Hacking Countermeasures	280
	5. Future Work	286
	6. Summary and Conclusions	286
	Acknowledgments	287
	References	287
	EVALUATING SECURITY SYSTEMS: A FIVE- STEP PROCESS	295
	Index	300
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