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The effect of competition intensity on software security - An empirical analysis of security patch release on the web browser market

Author

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  • Arrah-Marie Jo

    (MARSOUIN - Môle Armoricain de Recherche sur la SOciété de l'information et des usages d'INternet - UR - Université de Rennes - UBS - Université de Bretagne Sud - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - UBO - Université de Brest - IMT - Institut Mines-Télécom [Paris] - UR2 - Université de Rennes 2 - UBL - Université Bretagne Loire - IMT Atlantique - IMT Atlantique - IMT - Institut Mines-Télécom [Paris], LEGO - Laboratoire d'Economie et de Gestion de l'Ouest - UBS - Université de Bretagne Sud - UBO - Université de Brest - IMT - Institut Mines-Télécom [Paris] - IBSHS - Institut Brestois des Sciences de l'Homme et de la Société - UBO - Université de Brest - UBL - Université Bretagne Loire - IMT Atlantique - IMT Atlantique - IMT - Institut Mines-Télécom [Paris], IMT Atlantique - LUSSI - Département Logique des Usages, Sciences sociales et Sciences de l'Information - IMT Atlantique - IMT Atlantique - IMT - Institut Mines-Télécom [Paris])

Abstract

This paper examines the effect of competition intensity on software vendors' security investments when the software is provided free of charge to users. We study the case of software at the center of Internet security, namely the web browser, in which vendors derive their revenue from advertising, and compete in quality. Specifically, using a pooled cross-sectional data set on security patch release on web browsers from 2009 to 2018, we examine how competition intensity affects web browser publishers' promptness to release a security patch. Contrary to many empirical works examining the link between competition and quality, we find that market concentration is not necessarily harmful to quality provision: a higher market concentration positively impacts the vendor's responsiveness in patching vulnerabilities, although this effect is reduced when the vendor is too dominant.

Suggested Citation

  • Arrah-Marie Jo, 2017. "The effect of competition intensity on software security - An empirical analysis of security patch release on the web browser market," Post-Print hal-03098980, HAL.
    • Handle: RePEc:hal:journl:hal-03098980
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    Cited by:

    1. Arrah-Marie Jo, 2019. "Software vulnerability disclosure and security investment [L'impact de la divulgation d’une faille de sécurité : au-delà des motivations de l’éditeur de logiciel]," Post-Print hal-03033198, HAL.
    2. Alessandro Fedele & Cristian Roner, 2022. "Dangerous games: A literature review on cybersecurity investments," Journal of Economic Surveys, Wiley Blackwell, vol. 36(1), pages 157-187, February.

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