Percent Externality Cost

Maximum Social Optimal Cybersecurity Investment as a Percent of Firm’s Expected Private Expected Loss

0%

36.79%

20%

44.15%

40%

51.50%

60%

58.86%

80%

66.22%

100%

73.58%

120%

80.93%

140%

88.29%

160%

95.65%

180%

103.01%

200%

110.36%