In this paper, we examine how software vulnerabilities affect firms that license software and consumers that purchase … software. In particular, we model three decisions of the firm: (i) an upfront investment in the quality of the software to … software. We also model two decisions of the consumer: (i) whether to purchase the software; and (ii) whether to apply a patch. …

experiments and survey-based data. In the experiment subjects are shown a network, in which their location is exogenously assigned … these biases. The experiments yield three further findings: (iii) network cognition is affected by the subject's location …, (iv) the accuracy of network cognition varies with the nature of the network, and (v) limitations in network cognition …

. We consider a dynamic game in which firms improve both a new and a rival old technology while learning about the relative …