Search GSSD

Overcoming Impediments to Information Sharing

When deciding whether or not to disclose a software vulnerability, firms first think of their private welfare. Competitors may create a barrier to information sharing out of fear of degradation—meaning sharing private information benefits their rival and costs them a competitive edge. Firms may refuse to share information when they believe refusal to do so is more deleterious for their rivals than for themselves, thus creating a competitive advantage. Managers may also be biased toward the status quo and risk-aversion by not notifying the public of vulnerabilities. Third, the paper suggests when information sharing may actually be sub-optimal. The article concludes by suggesting how the alignment of private welfare considerations and social optimality can be promoted.
Amitai Aviram and Avishalom Tor
George Mason University School of Law
Industry Focus: 
Information & Telecommunication
Internet & Cyberspace
Legal & Financial
Bibliographies & Reports