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Economic Motivations for Software Bug Bounties

Author

Listed:
  • Christopher Sprague

    (Rochester Institute of Technology)

  • Jeffrey Wagner

    (Rochester Institute of Technology)

Abstract

Some software developers sponsor bug bounty programs, whereby outside parties with comparatively lower costs are compensated for finding bugs. We propose a basic model of why some developers offer bounties while others don't, and why those that do offer bounties typically outsource only a portion of the bug-finding. Our relatively basic framework and preliminary result can support further investigation of public policy instruments, such as products liability law, aimed at modulating software failures that may have large public impacts.

Suggested Citation

  • Christopher Sprague & Jeffrey Wagner, 2018. "Economic Motivations for Software Bug Bounties," Economics Bulletin, AccessEcon, vol. 38(1), pages 550-557.
    • Handle: RePEc:ebl:ecbull:eb-17-01024
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2018/Volume38/EB-18-V38-I1-P52.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Bug bounty; software bug bounties;

    JEL classification:

    • K2 - Law and Economics - - Regulation and Business Law
    • L8 - Industrial Organization - - Industry Studies: Services

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