Security Economics: A Personal Perspective

This paper describes the origins of security economics. The birth of this thriving new discipline is sometimes credited to a talk I gave at ACSAC in December 2001, but the story is
more complex. After sabbatical visits to Berkeley in 2001–2 to work with Hal Varian, we organised the first Workshop on the Economics of Information Security in June 2002.
Since then the field has grown to encompass arguments over open versus proprietary systems, the econometrics of online crime, the behavioural economics of security and much else. It has started to have a significant impact on policy, with security-economics studies of cybercrime and infrastructure vulnerability being adopted as policy in the EU, while security economics PhDs have got influential jobs in the White House and elsewhere.
Author: Ross Anderson
University of Cambridge Computer Laboratory
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