Managing Security Outsourcing in the Presence of Strategic Hackers

2020 ◽  
Vol 17 (3) ◽  
pp. 235-259 ◽  
Author(s):  
Yong Wu ◽  
Junlin Duan ◽  
Tao Dai ◽  
Dong Cheng

Nowadays, firms tend to outsource security operations to professional managed security service providers (MSSPs) as a result of the sophistication of strategic hackers. Thus, how an MSSP makes security decisions according to a strategic hacker’s action is worth researching. Constructing a contract theory model, this paper examines the interaction between an MSSP and a strategic hacker based on both parties’ characteristics. We find that the hacker will give up less valuable information assets, and thus not all information assets are worth protecting for the MSSP. For both parties, their optimal efforts do not necessarily increase with their respective efficiency, and the firm’s reputation loss has an opposite effect on its respective efforts. Moreover, we distinguish two types of security externalities including MSSP-side externality and hacker-side externality, and we find that the two types of security externalities have different effects on both parties’ optimal efforts and expected payoffs. We also find that as a result of the trade-off between the integration effect of the MSSP and the effect of MSSP-side externality, firms are still willing to outsource their security operations to the MSSP even when an MSSP devotes fewer security efforts than those of firms that manage security in-house. Last, we extend our base model from two aspects to generalize the main results.

2009 ◽  
pp. 2306-2322
Author(s):  
Rohit Prasad ◽  
Varadharajan Sridhar

With 225 million subscribers, India has the world’s third largest mobile subscriber base in the world. The Indian mobile industry is also one of the most competitive in the world with 4-7 operators in each service area. A large number of operators bring competition and its associated benefits such as decrease in price and hence corresponding growth of the market. On the other hand in the presence of economies of scale, too many operators may result in inefficient scales and high unit costs. This article analyses the trade-off between competition and economies of scale by estimating the production function for mobile subscribers and traffic carried. Analysis of panel data reveals the existence of economies of scale in the Indian mobile sector. We then derive an upper bound on the optimal number of operators in each license area and discuss policy implications.


Assessment ◽  
2021 ◽  
pp. 107319112110478
Author(s):  
Cihan Demir ◽  
Brian F. French

The Washington Assessment of the Risks and Needs of Students (WARNS) is a computer-based assessment created to help courts, schools, and youth service providers determine an adolescent’s risks and needs that may lead to truancy, drop out, or delinquency from school. Users are advised to consider the WARNS total score to work with youth. A total score estimate based on fewer items than the full item set may result in less respondent burden, administration time, and fatigue, while not hindering accurate decisions. This simulation study examined the applicability and efficiency of a computerized adaptive test (CAT) to estimate a WARNS total score under a unidimensional item response theory model. The results demonstrate that the CAT provides an accurate estimate of students’ risks and needs and reduces the number of items administered for each examinee compared with the existing version. Future directions and limitations of CAT development with the WARNS are discussed.


2017 ◽  
Vol 16 (03) ◽  
pp. 625-684 ◽  
Author(s):  
Alireza Shahrasbi ◽  
Mehdi Shamizanjani ◽  
M. H. Alavidoost ◽  
Babak Akhgar

In this study, by analyzing the related literature, the companies providing security services and, more importantly, the data provided by a group of experts, a novel set of 39 criteria is extracted which assists the Managed Security Service Provider (MSSP) selection process. The set is further categorized into eight general classes. The validity and weights of these criteria are measured by a group of experts in Iran. Due to the large number and often conflicting criteria, and the qualitative nature of the evaluations of the service providers, fuzzy multi-criteria decision-making methods (FMCDM) are adopted. In order to demonstrate the application of the proposed model, a numerical example is included, in which eight service providers are evaluated by four decision makers applying fuzzy TOPSIS, fuzzy VIKOR, fuzzy Group ELECTRE, and fuzzy SAW methods. Owing to the variations of the outputs of the applied MCDM methods, they are further analyzed by an aggregation method to propose a unique service provider. A comparison between the output of the aggregation method and the four applied Fuzzy MCDM methods is also made with the help of Euclidean, Hamming, Manhattan and Chebyshev distances. The comparison shows the minimum diversion between the outputs of the Fuzzy TOPSIS and the aggregation method, which indicates the appropriateness of the fuzzy TOPSIS method in this particular problem.


2017 ◽  
Vol 9 (2) ◽  
pp. 171
Author(s):  
Rui Entradas Silva ◽  
Álvaro Lopes Dias

This study seeks to identify the most important criteria for selecting private security service providers, specifically manned guarding. Previous research on provider selection has been generic focusing on multi-criteria model decision development, but not on the previous stage where industry related criteria should be identified. Given that manned guarding is a service that affects our daily lives, it is important to focus attention on this area of activity. Selecting a private security service provider should therefore be a process in researchers’ agenda. We contribute to the literature by identifying relevant criteria in manned guarding provider selection and by using a methodology than can be applied in other industries to identify sensitive criteria besides traditional factors (eg. price, quality, delivery). We gathered a panel of 15 experts in this field to apply Delphi method by gathering their opinion in ordering the most important criteria to select manned guarding service providers.Results shows price as the most important criterion, but it was closely related to the professional experience of the operations managers (supervisors and directors), the geographic location and the financial stability of the companies.


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