Information Sharing in Critical Infrastructure Industries: Understanding the Behavioral and Economic Impediments

24 Pages Posted: 22 Aug 2003  

Amitai Aviram

University of Illinois College of Law

Avishalom Tor

Notre Dame Law School; University of Haifa - Faculty of Law

Date Written: February 2004

Abstract

This paper is a specialized version, abbreviated and focused on application to critical infrastructure protection, of our paper titled "Overcoming Impediments to Information Sharing." Impediments to information sharing between firms operating critical infrastructure have been identified as a key security concern in the recently promulgated National Strategy for the Physical Protection of Critical Infrastructures and Key Assets. This paper identifies economic and behavioral impediments to information sharing among rivals in general, and rivals operating critical infrastructure in particular. The paper then assesses conditions affecting the severity of these impediments. Finally, the paper takes first steps in developing a framework that will predict more accurately when private information sharing would be suboptimal and suggest how better to align private information sharing with social optimality.

Keywords: Information sharing, information exchange, antitrust, cooperation, collective action, degradation, norms, rivalry, risk, loss aversion, omission bias

JEL Classification: D21, K21, L14, L20, L41

Suggested Citation

Aviram, Amitai and Tor, Avishalom, Information Sharing in Critical Infrastructure Industries: Understanding the Behavioral and Economic Impediments (February 2004). George Mason Law & Economics Research Paper No. 03-30; FSU College of Law, Public Law Research Paper No. 103. Available at SSRN: https://ssrn.com/abstract=427540 or http://dx.doi.org/10.2139/ssrn.427540

Amitai Aviram (Contact Author)

University of Illinois College of Law ( email )

504 E. Pennsylvania Avenue
Champaign, IL 61820
United States

Avishalom Tor

Notre Dame Law School ( email )

P.O. Box 780
Notre Dame, IN 46556-0780
United States

University of Haifa - Faculty of Law ( email )

Mount Carmel
Haifa, IN IN 31905
Israel

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