Software Vulnerability Analysis in Cyber Security: A Network Structure Approach

Taylor J. Canann
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Taylor J. Canann: Department of Economics, Brigham Young University

No 2013-05, BYU Macroeconomics and Computational Laboratory Working Paper Series from Brigham Young University, Department of Economics, BYU Macroeconomics and Computational Laboratory

Abstract: I analyze the effects of network structure, in particular network centrality, on vulnerability disclosure policy. My analysis finds that the structure of the network of households can greatly effect the overall welfare of the economy. Specifically, I find that the distribution of the centrality of the nodes and the radius of the network have a significant effect on the optimal disclosure policy system. I find that the level of activity by the software vendor to find vulnerabilities, alpha, only effects the household decision as a “show of good faith". As long as the software vendor puts a little effort into alpha, then the household is more likely to update and desire to purchase the software. However, at the margin, the centrality effects of the network dominate the effects of the software vendor's attempt to change alpha.

Keywords: Vulnerability Analysis; Network Theory; Cyber Security; Disclosure Policy; Information Security; Network Centrality. (search for similar items in EconPapers)
JEL-codes: C7 L14 L86 O3 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2013-12, Revised 2014-04
New Economics Papers: this item is included in nep-gth and nep-net
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https://docs.google.com/file/d/0B6KGaihAO5TJWmZXczlYaWNpeFk/edit Second version, 2014 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:byu:byumcl:201305

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