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Safety in numbers? The effect of network competition on cybersecurity

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  • Gideon, Carolyn
  • Hogendorn, Christiaan

Abstract

Economic incentives for security investment in elements of the Internet is of increasing concern. This paper contains an exploration of the incentives for Internet service providers (ISP)s to invest in security. The analysis focuses on the spillover effects of ISP security investments to other ISPs, which may be serving a different market or competing in the same market. The findings show that the nature of these spillover effects can change the effect competition in the ISP market has on incentives for investment in cybersecurity by the ISPs.

Suggested Citation

  • Gideon, Carolyn & Hogendorn, Christiaan, 2014. "Safety in numbers? The effect of network competition on cybersecurity," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106876, International Telecommunications Society (ITS).
  • Handle: RePEc:zbw:itsb14:106876
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    File URL: https://www.econstor.eu/bitstream/10419/106876/1/816640726.pdf
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    1. Michel J. G. van Eeten & Johannes M. Bauer & Hadi Asghari & Shirin Tabatabaie, 2010. "The Role of Internet Service Providers in Botnet Mitigation: An Empirical Analysis Based on Spam Data," OECD Science, Technology and Industry Working Papers 2010/5, OECD Publishing.
    2. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500.
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