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C H A P T E R
7
Economics
The great fortunes of the information age lie in the hands of
companies that have established proprietary
architectures that are used by a
large installed base of
locked-in customers.
— Carl Shapiro and Hal Varian
There are two things I am sure of after all these years: there is
a growing societal need for high assurance software, and
market forces are never going to provide it.
— Earl Boebert
If you try to buck the markets, then the markets will buck you.
— Margaret Thatcher
7.1 Introduction
The economics of information security has recently become a thriving and
fast-moving discipline. We started to realise round about 2000 that many
security system failures weren’t due to technical errors so much as to wrong
incentives: the classic case is where the people who guard a system are not
the people who suffer when it fails. Indeed, security mechanisms are often
designed quite deliberately to shift liability, which often leads to trouble.
Economics has always been important to engineering, at the raw level of
cost accounting; a good engineer was one who could build a bridge safely
with a thousand tons of concrete
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