nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2015‒05‒09
two papers chosen by
Walter Frisch
Universität Wien

  1. ICT Standardization and use of ICT standards: a firm level analysis By Riillo, Cesare Fabio Antonio
  2. What drives cybercrime? Empirical evidence from DDoS attacks By Bastiaan Overvest; Bas Straathof

  1. By: Riillo, Cesare Fabio Antonio
    Abstract: Standards perform some fundamental economic functions and their relevance for ICT is acknowledged by firms, researchers and policy-makers. This paper investigates the driving forces of formal ICT standards setting (i.e. standardization). Previous quantitative studies have neglected that ICT standards use and engagement in ICT standardization are related activities. Leveraging upon a unique module of the ICT usage survey 2013 for Luxembourg, the analysis explicitly takes into account the use of formal ICT standards on a large representative sample of firm. While previous analyses find that larger firms are more likely to participate in standardization, the results of the analysis suggest that size has a complex pattern. Small firms for whom ICT standards are particularly relevant could overcome the barriers that prevent other firms to benefit from standardization. Additionally, the paper investigates the relationship between the professional use of social network and ICT standards and standardization. The use of social networks is positively correlated with the adoption of ICT standards but not with the participation.
    Keywords: ICT Standardization, ICT standards, social networks, size, recursive bivariate probit
    JEL: L80 L86 O39
    Date: 2014–09–08
  2. By: Bastiaan Overvest; Bas Straathof
    Abstract: Distributed Denial of Service (DDoS) attacks are a frequently occurring type of cybercrime, with potentially large costs to the real economy. We propose a simple model of the size and direction of DDoS attacks. The main predictions of the model are that effective botnets are located in countries with many internet users and high internet speeds, and that the most attractive targets of DDoS attacks are countries with many internet users. We use a theoretical framework to derive a structural equation that resembles the â€gravity equations†common in the literature on international trade. The empirical results are consistent with the predictions of the model. The number of internet users is strongly related to the number of international DDoS attacks: our results suggest that a ten percent increase in the number of internet users worldwide would raise the total number of DDoS attacks by eight percent. Bandwidth in the country of origin is also significantly related to attacks, but quantitatively not very important. The vulnerability of computers does not seem influential. Trade relations are significantly related to attacks, while other economic factors including GDP per capita do not appear to play a role. The geographical distance between countries is not relevant, while historical ties between countries are significantly related to the number of attacks. This paper is one of the first to explore possible determinants of cybercrime at an aggregate level. We hope that by uncovering some general patterns in the data, our research may contribute to the growing and exciting field of cybersecurity economics.
    JEL: L86 F14 F51
    Date: 2015–04

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