(no subject)

[timelets]

Here's some recent work that relates to the quesion whether the principle "use at your own risk" when applied to networked consumer services (as opposed to standalone consumer products) creates unique negative externalities.

https://www.sciencedirect.com/science/article/pii/S0022053116300837

We develop a theoretical model of security investments in a network of interconnected agents. Network connections introduce the possibility of cascading failures due to an exogenous or endogenous attack depending on the profile of security investments by the agents. We provide a tractable decomposition of individual payoffs into an own effect and an externality, which also enables us to characterize individual investment incentives recursively (by considering the network with one agent removed at a time).

D. Acemoglu, et al 2016.

https://doi.org/10.1016/j.jet.2016.09.009