A Bargaining Games Approach to Information Security Interactions

This study models information security interactions in two scenarios: a) corporate and intermediary information security disclosure platforms and b) a direct interaction between heavyweight actors with high stakes. Using bargaining games, we analyze and discuss equilibrium conditions. Our results indicate that equilibrium conditions are easily attained when gains are small, vulnerabilities are shallow and when disclosure platforms are used to facilitate interactions between actors. Contrastingly, when stakes are high, our models arrive at conditions for equilibrium that are very difficult to achieve and maintain. We extend this model to a high stakes scenario to help explain the value proposition of Black Market Brokers.