Comparison of information security decisions under different security and business environments

Yong Wu, Gengzhong Feng and Richard Y. K. Fung

Journal of the Operational Research Society, 2018, vol. 69, issue 5, 747-761

Abstract: Serious information security breaches have caused firms to suffer from customer churns directly or indirectly. To prevent customer churns, firms usually enhance their security protection through two measures, i.e. security investment and security information sharing. Prior studies seldom consider security environment and business environment simultaneously when making a firm’s optimal security decisions. Using game theory, this paper purports to demonstrate that a firm’s security decisions under a competitive environment differ significantly from those under an integrated environment. Moreover, distortions may surface if firms do not cooperate on security practices. Thus, this paper further analyses the measures that a social planner such as the government or industry association controls firms’ security decisions, and results show that these measures may not always be effective. Instead, social planners are recommended to enhance or attenuate the controlling level of the two security decisions based on realistic security and business environments.

Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://hdl.handle.net/10.1057/s41274-017-0263-y (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:tjorxx:v:69:y:2018:i:5:p:747-761

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/tjor20

DOI: 10.1057/s41274-017-0263-y

Access Statistics for this article

Journal of the Operational Research Society is currently edited by Tom Archibald

More articles in Journal of the Operational Research Society from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().