Thomas Fink, David A. Walker

(Georgetown University, USA)

 

 

Abstract: A dynamic model is developed to represent revenue losses where a firm is a cybercrime victim after a period of strong revenue growth. The firm’s goal is assumed to be revenue maximization. An application illustrates that it will require a long time before the firm reestablishes strong revenue growth after cybercrime. The continuing costs Target and Home Depot incur are examples. The model portrays dynamic stages of revenue growth for a victimized firm. The model can be extended to a wide range of other business and economic losses for public institutions, assuming a different utility function.

 

 

Key words: dynamic economic loss; cybercrime

 

JEL code: D21