Toward a Monopoly Botnet Market

ABSTRACT

Economics play an increasingly important role in fighting cyber crimes. While the arms race against botnet problems has achieved limited success, we propose an approach attacking botnets through affecting a botnet market structure. The characteristics of the present underground botnet market suggest that it functions effectively as perfectly competitive. Competitive markets are usually efficient. We argue that less competition in the botnet market is actually preferred. Our economic analysis suggests that monopoly reduces the overall market output of botnets. Using a model of market structure evolution, we identify key forces that affect the botnet market structure and propose possible ways such as defaming botnet entrants to reduce competition, which ultimately reduce the size and output of the botnet market. The analysis provides useful insight to botnet defenders as a guidance on an efficient allocation of defending resources by attacking more on new entrants to the botnet market relative to the existing botmasters.

KEYWORDS:

• botnet defamation
• botnet defense
• economics
• market structure
• monopoly

Additional information

Notes on contributors

Zhen Li

Zhen Li is an associate professor of economics in the Department of Economics and Management at Albion College. She holds a Master’s Degree and PhD in Economics from Princeton University. She graduated with her Bachelor’s Degree in International Economics from Peking University. Dr. Li’s recent research interests include inter-disciplinary research study in economics and game theory of computer networks and information security, and she has published a number of articles in the field.

Qi Liao

Qi Liao is an assistant professor in the Department of Computer Science at Central Michigan University. He received his MSc and PhD in Computer Science and Engineering from the University of Notre Dame. He graduated with a BSc and Departmental Distinction in Computer Science from Hartwick College with a minor concentration in mathematics. His research interests include computer and network security, anomaly detection, security data analysis and visualization, and economics and game theory of cybersecurity. Dr. Liao received USENIX best paper award and other awards from National Security Innovation Competition at Colorado Springs, University of Notre Dame Center for Research Computing, and IEEE Visual Analytics Science and Technology Challenge. Dr Liao has served as international conference co-chair, on technical program committees, on journal editorial boards, and numerous times as a peer reviewer. He is a member of Kappa Mu Epsilon, Upsilon Pi Epsilon, and Tau Beta Pi.