THE ECONOMICS OF COMPUTER HACKING
Peter T. Leeson, Christopher J. Coyne · 2005
This paper considers various classes of computer hackers, with a special emphasis on fame-driven versus profit-driven hackers. We use simple economic analysis to examine how each of these hacking “markets ” work. The resulting framework is employed to evaluate current U.S. policy aimed at reducing the threat of computer hacking and shows that this policy is largely effective. We consider policy adjustments consistent with the insights of the framework provided as a means of strengthening cyber security. * We thank Peter Boettke, Tony Carilli and Tyler Cowen for helpful comments and suggestions. The financial support of the Critical Infrastructure Project, the Earhart Foundation and the Oloffson Weaver Fellowship is also gratefully acknowledged. 1