Synopsis:
Security comes at a cost. How much should I pay for effective virus protection? If all my friends and neighbors buy it as well, then they are unlikely to infect me. So then I should perhaps not invest into the virus protection at all? But if all of my friends and neighbors follow this line of reasoning, then none of us will buy the virus protection.
The other way around, every market transaction must to be secured. Music, movies and software can only be sold if their copy protections cannot be broken. But maybe I can let the users download my apps for free, and then collect and sell the information about those users? How can I bundle and auction away that information to maximize the revenue? How can I prove to the bidders that the user data that I am selling are not fake? How can I prevent the buyers of my data from copying and re-selling them? How can I make sure that the apps that I download myself do not collect and sell my data?
Lecture slides:
- 1: Introduction
- 2: Security Investment Analysis
- 3: Interedependencies of security investments
- 4: Basic ideas about the market
- 5: Market with intermediaries and advertising
- 6: Network effects and self-fulfilling claims
- 7: Towards information security of market
- 8: Social welfare and social choice
- 9: Overview
- 10: Review
Background
This course was a part of ISG‘s MSc in Information Security programme in 2012-13. Since 2014, it has been given at University of Hawaii at Manoa as ICS 655. In preparing this course we have been supported by a grant from the Intel Corp.