Roberds and Schreft on the Economics Behind Data Security, Privacy, and Identity Theft

William Roberds and Stacey L. Schreft, both of the Fed, have written Data Security, Privacy, and Identity Theft: The Economics Behind the Policy Debates, 23 Economic Perspectives (2009).  Here is the (very short) abstract:

In this article, we explore the concept of efficient confidentiality, using some ideas from economic theory.