How vulnerabilities affect firms/consumers..
Posted by jericho
http://infosecon.net/workshop/pdf/9.pdf http://infosecon.net/workshop/slides/weis41.ppt
Preliminary and Incomplete Internet Security, Vulnerability Disclosure, and Software Provision Jay Pil Choi, Chaim Fershtman, and Neil Gandal1 April 5, 2005
Abstract
In this paper, we examine how software vulnerabilities affect firms that sell software and consumers that purchase software. In particular, we model three decisions of the firm: (I) an upfront investment in the quality of the software to reduce potential vulnerabilities, (II) a policy decision whether to announce vulnerabilities, (III) and a price for the software. We also model two decisions of the consumer: (I) whether to purchase the software and (II) whether to apply a patch.
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