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An economic analysis of information security investment decision making for substitutable enterprises

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  • Xiaotong Li
  • Qianyao Xue

Abstract

As the competition among enterprises is increasingly fierce, the substitution of information assets makes the behavior of hackers and enterprises more complicated in the information security investment decision‐making process. In this paper, a game model of substitutable enterprise information security investment decision making is constructed by considering the influencing of substitution rate among enterprises, enterprise quantity, and probability of hacker invasion, and the optimal investment level is analyzed among substitutable enterprises under individual decision and joint decision based on game theory, optimization theory, and synergy theory. This research provides a new solution of information security investment decision making among substitutable enterprises.

Suggested Citation

  • Xiaotong Li & Qianyao Xue, 2021. "An economic analysis of information security investment decision making for substitutable enterprises," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(5), pages 1306-1316, July.
    • Handle: RePEc:wly:mgtdec:v:42:y:2021:i:5:p:1306-1316
    DOI: 10.1002/mde.3310
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    References listed on IDEAS

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    1. Huang, C. Derrick & Behara, Ravi S., 2013. "Economics of information security investment in the case of concurrent heterogeneous attacks with budget constraints," International Journal of Production Economics, Elsevier, vol. 141(1), pages 255-268.
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    Cited by:

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    3. Xiaotong Li, 2022. "An evolutionary game‐theoretic analysis of enterprise information security investment based on information sharing platform," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(3), pages 595-606, April.

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