Cybercrime and cloud computing. A game theoretic network model

In this paper, a network model is developed in which three playersa profit-maximizing provider of cloud computing services, its consumers, and a hackersequentially choose their strategies. Several scenarios with different levels of data security and public prosecution of the hacker are analyzed. Especially for the case when no security measurements are available, a firm's strategy to limit the network size in order to render hacking unattractive is discussed in detail. Finally, policy implications are given implying better international cooperation of the law enforcement authorities.