(1) | (2) | (3) | (4) |
|
Percent Externality Cost | Private Loss (i.e., costs) from a Successful Cyber Security Breach | Optimal Cyber security Investment Based on Private Costs | Optimal Cyber security Investment Based on Total Social (Private + Externality) Costs | Percent Underinvestment by Failing to Consider Externalities |
0% | $400,000 | $60,000 | $60,000 | 0% |
20% | $400,000 | $60,000 | $75,271 | 20.29% |
40% | $400,000 | $60,000 | $89,315 | 32.82% |
60% | $400,000 | $60,000 | $102,386 | 41.40% |
80% | $400,000 | $60,000 | $114,663 | 47.67% |
100% | $400,000 | $60,000 | $126,274 | 52.48% |
120% | $400,000 | $60,000 | $137,318 | 56.31% |
140% | $400,000 | $60,000 | $147,871 | 59.42% |
160% | $400,000 | $60,000 | $157,992 | 62.02% |
180% | $400,000 | $60,000 | $167,731 | 64.23% |
200% | $400,000 | $60,000 | $177,128 | 66.13% |