Authors:
Pankaj Pandey
and
Einar Arthur Snekkenes
Affiliation:
Gjøvik University College, Norway
Keyword(s):
Information Security, Security Economics, Security Risk Management, Prediction Market.
Related
Ontology
Subjects/Areas/Topics:
Data and Application Security and Privacy
;
Information and Systems Security
;
Information Assurance
;
Management of Computing Security
;
Risk Assessment
;
Security Management
Abstract:
Prediction Markets are the markets designed and operated to mine and aggregate the information scattered
among the traders. Recently, some researchers have started exploring the application of prediction markets in
the information security domain. The information security prediction market will facilitate trading of contracts
to hedge the financial impact of the risks associated with the underlying information security events, such as
discovery of a vulnerability in a piece of software. However, prediction markets differ in their objectives and
requirements, and therefore information security prediction markets need to be carefully engineered to meet
the specific requirements. The contribution of this paper is the identification of a set of design requirements
for an information security prediction market, and associated performance criteria. We present five categories
of design requirements: Contracts, Trading Process, Participants and Incentives, Clearing House, and Market
Manageme
nt for the information security prediction market. Furthermore, we present six performance
measures: Information Elicitation, Transparency, Efficiency, Transaction Cost, Liquidity, and Manipulation
Resistance for the performance assessment of information security prediction market.
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