Citation

Discussion Paper Details

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Full Details

Title: Internet Security, Vulnerability Disclosure and Software Provision

Author(s): Jay-Pil Choi, Chaim Fershtman and Neil Gandal

Publication Date: October 2005

Keyword(s): internet security, network effects, software and vulnerabilities

Programme Area(s): Industrial Organization

Abstract: In this paper, we examine how software vulnerabilities affect firms that license 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; and (iii) 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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Bibliographic Reference

Choi, J, Fershtman, C and Gandal, N. 2005. 'Internet Security, Vulnerability Disclosure and Software Provision'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=5269