TITLE:
Cybersecurity: Integrating Information into the Microeconomics of the Consumer and the Firm
AUTHORS:
Scott Farrow
KEYWORDS:
Microeconomics, Utility, Cost, Cyber Losses
JOURNAL NAME:
Journal of Information Security,
Vol.7 No.5,
August
30,
2016
ABSTRACT: The connectivity of information has changed many
things but not the way economists model consumers, firms and government.
Information is here newly modeled as a fundamental element of microeconomic
choices and utility, cost and tax functions. The results are more clearly
defined metrics for losses due to cyber breaches or productivity gains from cyber investments. The integration of
information into standard microeconomics also allows use of econometric
and other tools to analyze the empirics of
the consumer and the firm. In particular, the results identify ways in which losses in the Gordon and Loeb [1] model can be specified in more detail.