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Incentives and Information Security

Stub. Misaligned incentives as a root cause of security failures, informational asymmetries (lemons markets for security), the economics of censorship resistance, and how network topology shapes security economics. (AGT ch. 25)

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The economics-of-security chapter: why many security failures are better explained by misaligned incentives (the party who could prevent a breach isn’t the party who bears its cost) than by purely technical weaknesses, plus informational-asymmetry effects (akin to Akerlof’s lemons market), censorship-resistance economics, and how network topology affects attacker and defender incentives.

Outline (TODO — flesh out each)

  • Misaligned incentives in security
  • Informational asymmetries
  • The economics of censorship resistance
  • Complex networks and topology

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