Positive and Negative Arguments for Sharing the Information - Essay Example

We must look at what exactly is meant by the term ‘vulnerability disclosure’. In simple terms, we can define vulnerability disclosure when a public announcement regarding a software flaw is made. This brings us to the argument against the sharing of information as it mostly leads to vulnerability. Rahul Telang, and Sunil Watta, in ‘Impact of Software Vulnerability Announcements on the Market Value of Software Vendors – an Empirical Investigation’ draw that very conclusion through thorough research based on a collection of data from various sources.

With the rapid advancement in technology and the internet evolution information sharing has peaked to a new level. This despite its advantages in terms of rapid information sharing also brings to the surface the increased chances of vulnerabilities being exposed. As a result not only are software security products like firewalls at risk but software like operating systems and enterprise software can also be manipulated to create security-related attacks; Hence providing another aspect that goes against information sharing due to the presence of vulnerabilities.

Further examples in terms of a study by NIST in 2002 can be observed which estimated the cost of faulty software at $60 bn per year. Most prominent are incidents like the Cod Red virus and the Melissa virus in which hackers exploited flaws in the software and caused enormous damage.

Moving on to some arguments in favor of information sharing despite the existence of vulnerabilities we see that prior literature suggests that software defects don’t necessarily lead to a loss in the market value of the firm. This is due to two main reasons; firstly because the End User License Agreement limits the liability of the software developers encouraging them to facilitate information sharing despite the costs. Second due to the general philosophy held by software stakeholders that it is a uniquely complex product that will have understandable defects. A key example here is that of the numerous vulnerabilities present in Microsoft and yet its products are not associated in any way with low quality simply because of the huge user base that it holds in terms of information sharing.

Arora, Telang, and Xu (2004) look at a more optimistic picture of the vulnerability aspect and argue in favor of information sharing as their study leads them to the conclusion that disclosure can force vendors to release patches quickly. Arora, Caulkins, and Telang (2003) follow suit and they discover that larger software vendors find it optimal to rush products into the market and then invest in post-launch patching hence saving overall product costs and using the vulnerability to their advantage.
An externality is defined by economists as a situation in which an individual’s actions have economic repercussions for others. It is important to note that in these instances the fact that there is no compensation is of critical importance. Externalities are divided into positive and negative. In negative externality, the consequences are mostly known, for example, the effects of environmental pollution caused by a plant and the way it might have an impact on the neighboring homes. Positive externalities on the other hand are most common in network externalities. A common example would be the installation of a telephone for another customer which would positively affect others since they would be now easily able to reach that individual. In terms of network externalities coordination would be a basic example.

Several attributes of computer security suggest that it is an externality. This is basically on the basis of the security that one machine has on another. A positive example of externality in terms of computing would be looking at the case of computer security in automotive security. When the auto theft response system known as Lojack is introduced in a certain area it brings down the auto theft level. This is mainly due to the function of the Lojack which makes it impossible for thieves to detect it. As a result, individuals in possession of Lojack are providing positive externalities to other car owners in the area. Read More