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Optimal solution to cybercrimes: lessons from law and economics 6

By: 4 0 16, [, ] | [, ] |

Contributor(s): The Phillipine Review of Economics. v51, n1. (June 2014) : pp. 84-116 5 6 [] |

Language: Unknown language code Summary language: Unknown language code Original language: Unknown language code Series: ; 46Edition: Description: Content type: text Media type: unmediated Carrier type: volumeISBN: ISSN: 2Other title: 6 []Uniform titles: | | Related works: 1 40 Ruperto P. Majuca 6 []Subject(s): -- 2 -- 0 -- -- | -- 2 -- 0 -- 6 -- | 2 0 -- | -- -- 20 -- | | -- -- Law and Economics;Public Goods -- Cybersecurity;Law Enforcement -- Interrelated Risks -- | -- -- -- 20 -- --Genre/Form: -- 2 -- Additional physical formats: DDC classification: | LOC classification: | | 2Other classification:

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Item type	Current location	Home library	Collection	Call number	Status	Date due	Barcode	Item holds
Book	PLM	PLM Periodicals Section	Periodicals	HC451.P538r.2014 (Browse shelf)	Available		PER 1677E

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ABSTRACT : A model is presented wherein cybercrimes are addressed through a combination of private and public measures. This captures the substitutability of private and public responses and determines the optimal combination of these approaches. The socially optimal level of security is achieved by equalizing the marginal-benefit-to-marginal-cost ratios of each of the three alternatives: private security investment, nonrivalrous security investment, and law enforcement measures. The interrelatedness of Internet risks causes individual firms to underinvest in private and public security goods. The government thus lowers the level of police enforcement expenditures to induce firms to invest more in individual precautions. In certain conditions, cooperation results in socially optimal levels of expenditures in private and public security goods. The Shapley [1953] value can be used as a criterion for allocating the costs and benefits among the members of a security cooperative. 56

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