The Economics of Computer Hacking* Peter T. Leeson Department of Economics West Virginia University Christopher J. Coyne Department of Economics Hampden-Sydney College Abstract This paper considers various classes of computer hackers, with a special emphasis on fame-driven versus profit-driven hackers. We use simple economic analysis to examine how each of these hacking “markets” work. The resulting framework is employed to evaluate current U.S. policy aimed at reducing the threat of computer…
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