Economics of security

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The economics of information security addresses the economic aspects of privacy and computer security. Economics of information security includes models of the strictly rational “homo economicus” as well as behavioral economics. Economics of security addresses individual and organizational decisions and behaviors with respect to security and privacy as market decisions.

Economics of security addresses a core question: why do agents choose technical risks when there exists technical solutions to mitigate security and privacy risks? Economics addresses not only this question, but also inform design decisions in security engineering.