Regulating Data Privacy and Cybersecurity
研究企业数据隐私与网络安全决策的相互依赖，发现数据共享时安全水平更高，但企业倾向于安全投资不足和过度共享数据，并分析了多种监管政策的效果。
This paper studies firms' data privacy and cybersecurity choices. We emphasise the strategic interdependence between these decisions and demonstrate that security in both the market equilibrium and the social optimum tends to be higher when data is shared. We also identify important market failures in the sense that firms tend to under‐invest in security and over‐share data. Our welfare analysis of a minimum security standard, disclosure and consumer education policies, liability rules and consumer mitigation strategies highlights the need for a co‐ordinated approach to regulation.