COMPUTER SCIENCE EN
SSRN-id566361.pdf

33 33 see kim gilmour wish you were here the

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33 33 See Kim Gilmour, Wish You Were Here? The Principality Of Sealand Is A Self- Proclaimed Sovereign State In The North Sea. It' s Also The Place To Host Your Site If You Want To Escape Draconian Internet Privacy Laws , Internet Magazine, December 1,
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Global Cyberterrorism, Jurisdiction, and International Organization 21 Regulatory competition is thought to occur under certain conditions, suggested by the work of Tiebout. These conditions include, inter alia, mobility of citizens, knowledge of variations in regulatory regimes and absence of spillovers. Where these conditions are met, Tiebout theorized, regulatory competition could lead to pressure on governments to improve regulation. However, if the regulatory competition is predicated upon regulatory arbitrage by private actors that results in the regulating state failing to bear the costs of its lax (or inefficiently strict) regulation, leading to spillovers, regulatory competition can demean national regulation. What has this to do with allocation of regulatory jurisdiction over the internet? The rules for allocation of jurisdiction will determine the extent to which the regulating state will bear the costs (or experience the benefits) associated with its regulation. For example, a strict rule of territorial conduct will leave the regulating state unaccountable for extraterritorial adverse effects. Thus, the possibility of regulatory competition provides an additional source of enhanced welfare derivable from transactions in jurisdiction. Furthermore, under circumstances where externalities could cause unstable regulatory competition–races to the bottom–the availability of contingent intervention by a centralized authority, such as an international organization, can act to provide a stable equilibrium. 34 This latter insight provides an additional reason for states to form an organization to “share” jurisdiction under certain circumstances. 6. Strategic Considerations and International Legal and Organizational Responses The discussions in parts 3, 4 and 5 above suggest some of the costs and benefits, including transaction costs, of international cooperation against cyberterrorism. The transaction costs perspective outlined above assumes non-strategic action to maximize aggregate welfare. However, an additional analytical perspective examines the strategic context of cooperation to enhance security against cyberterrorism. The payoff structure that forms this strategic context will be affected by transaction costs and by considerations of regulatory competition. Most importantly, as noted above, different states will have different, and/or inconsistent, preferences over security against cyberterrorism. One reason is that cybersecurity will be less valuable to states that use cyberspace less. Furthermore, some states will view cyberterrorism or cyberwarfare as a strategic option in the event of war, and will view other states’ security against cyberwarfare negatively.
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  • Spring '12
  • Kushal Kanwar
  • global cyberterrorism

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