Estimating the Value of Computer Files Using Willingness to Pay and Willingness to Accept

27 Pages Posted: 24 Mar 2020

See all articles by Edward Cartwright

Edward Cartwright

De Montfort University

Anna Cartwright

Coventry University

Lian Xue

School of Economics and Management - Wuhan University

Date Written: February 26, 2020

Abstract

Cyber attacks are a growing threat that undoubtedly cause significant loss to individuals. We know, however, surprisingly little about the true economic cost of such attacks. In this paper we estimate the value individuals put on their computer files by eliciting willingness to pay (WTP) and willingness to accept (WTA) from a representative sample of the UK population. We find that the distribution of valuations is highly skewed to the right, with a median WTP of only £50 and a median WTA of £700. Interestingly, we find systematic differences in WTP and WTA depending on the cyber awareness of the individual and their attitudes to data breach.

Keywords: Ransomware, Cyber-security, cyber-crime, willingness to pay, willingness to accept

JEL Classification: D10, K42

Suggested Citation

Cartwright, Edward and Cartwright, Anna and Xue, Lian, Estimating the Value of Computer Files Using Willingness to Pay and Willingness to Accept (February 26, 2020). Available at SSRN: https://ssrn.com/abstract=3544951 or http://dx.doi.org/10.2139/ssrn.3544951

Edward Cartwright (Contact Author)

De Montfort University ( email )

The Gateway
Leicester, LE1 9BH
United Kingdom

Anna Cartwright

Coventry University ( email )

Priory Street
Coventry, CV1 5FB
United Kingdom

Lian Xue

School of Economics and Management - Wuhan University ( email )

Wuhan
China

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