The Law and Economics of Cyber Security

Abstract

The vast increase in digital in insecurity – posed by ransomware, DDoS attacks and data breaches amongst others – requires an intelligent cyber security strategy. Government and industry can shape this strategy with legal instruments, such as regulations and contracts. However, very little is known regarding the social costs and benefits thereof. This is worrisome: cyber security expenditures will rise exponentially in the future as mankind becomes increasingly dependent on the digital world. ‘The Law and Economics of Cyber Security’ provides an in depth analysis into the root causes of this societal problem. The dissertation investigates novel legal instruments such as the possibility for insurance against cyber risks, the option to cover these risks by means of pooling and the EU data notification obligation in the GDPR. Furthermore, the study yields concrete policy recommendations for university, government and industry. In doing so, it combines fundamental analysis with concrete, actionable building blocks for an enhanced national cyber security strategy.