1.
Explain in detail using economic analytical tools why cyber security is a market failure
Solution
Cyber security has no geographical boundary and a sustainable economic system has been
elusive so far. For cyber security , each govt has to develop rapport with all other
econoimies/govts for necessary inputs and help on a reciprocal basis. It is becoming more and
more complex as each govt is also indulges in hacking( rethical or othwise) for its own vested
interests and therefore there is a trust deficit existing among many of the important economies of
the world as well. There is also an undercurrent of cyber war among some countries and till a
multilateral body takes up the onus to bring all the key players to a common platform , the cyber
security market will not develop.