August, Terrence; Tunca, Tunay I. - In: Management Science 52 (2006) 11, pp. 1703-1720
We study the effect of user incentives on software security in a network of individual users under costly patching and … negative network security externalities. For proprietary software or freeware, we compare four alternative policies to manage …) mandatory patching; (iii) patching rebate; and (iv) usage tax. We show that for proprietary software, when the software security …