Date Added: Aug 2012
The security of the Internet can be significantly improved if Internet Service Providers adopt firewalls to monitor traffic entering and leaving access networks. But this process suffers due to 'Free-riding', and hence, regulatory requirements and 'Seeding' strategies are required to influence the adoption process. In this paper, the authors analytically derive the equilibrium adoption levels and relate them to the initial seeding and mandating condition, and explore the issues of incentive alignment across users, firewall developers, and regulators. They define different notions of optimality and analytically develop optimum seeding and mandating policies.