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Terrence August

Associate Professor of Innovation, Technology and Operations

August's research broadly spans information systems and operations management with current interests in the economics of network software, production and service management, pricing and policy associated with network goods, and the interaction of digital piracy and security risk. He is actively investigating the control of information security risk using economic incentives as well as the provision of dynamic survival information to cancer patients.

August has co-founded two information technology start-up companies and worked in research and development and operations for the Clorox Company. He has consulted for Honeywell, GlaxoSmithKline, Herbalife and Time Warner Cable, and served as an expert witness in technology-related matters.

August received his Ph.D. in the field of operations, information & technology from the Graduate School of Business at Stanford University in 2007. Early in his career, he received the National Science Foundation CAREER award for his work on the economics of security.


Economics of Ransomware Attacks: Risk Interdependence and Large-Scale Attacks (with Duy Dao and Marius Niculescu). Management Science, December, 2022, 68(12), 8979-9002.

Competition among Proprietary and Open-Source Software Firms: The Role of Licensing on Strategic Contribution (with Wei Chen and Kevin Zhu). Management Science, May, 2021, 67(5), 3041-3066. Appendix

Market Segmentation and Software Security: Pricing Patching Rights (with Duy Dao and Kihoon Kim). Management Science, October, 2019, 65(10), 4575-4597. Appendix

Generating Value through Open Source: Software Service Market Regulation and Licensing Policy (with Hyoduk Shin and Tunay Tunca). Information Systems Research, March, 2018, 29(1), 186-205. 

Optimal Timing of Sequential Distribution: The Impact of Congestion Externalities and Day-and-Date Strategies (with Duy Dao and Hyoduk Shin). Marketing Science, September-October, 2015, 34(5), 755-774.

Designing User Incentives for Cybersecurity (with Robert August and Hyoduk Shin). Communications of the ACM, November, 2014, 57(11), 43-46.

Cloud Implications on Software Network Structure and Security Risks (with Marius Florin Niculescu and Hyoduk Shin). Information Systems Research, September, 2014, 25(3), 489-510.
  • Best Conference Paper, Conference on Information Systems and Technology (CIST), 2012

The Influence of Software Process Maturity and Customer Error Reporting on Software Release and Pricing (with Marius Florin Niculescu). Management Science, December, 2013, 59(12), 2702-2726.
  • 2013 AIS Best Publication of the Year in Management Science

Licensing and Competition for Services in Open Source Software (with Hyoduk Shin and Tunay Tunca). Information Systems Research, December, 2013, 24(4), 1068-1086. Appendix

Who Should be Responsible for Software Security? A Comparative Analysis of Liability Policies in Network Environments (with Tunay Tunca). Management Science, May, 2011, 57(5), 934-959. Appendix
  • Finalist for Best Paper Award in Information Systems (among articles published in Management Science from 2011-2013)

Let the Pirates Patch? An Economic Analysis of Software Security Patch Restrictions (with Tunay Tunca). Information Systems Research, March, 2008, 19(1), 48-70. Appendix

Network Software Security and User Incentives (with Tunay Tunca). Management Science, November, 2006, 52(11), 1703-1720. Appendix


Working Papers

Managing Sharing of Digital Content Services (with Byung Cho Kim and Daehoon Noh)

Cyberattacks, Operational Disruption and Investment in Resilience Measures (with Daehoon Noh, Noam Shamir, and Hyoduk Shin)

The Impact of Cryptocurrency on Cybersecurity (with Duy Dao, Kihoon Kim, and Marius Niculescu)

Information in Surveillance Scans: The Patient's Window into Post-Surgical Cancer Risk (with David Schkade)

Consumption Timing in Congestible Services: Strategic Smoothing (with Duy Dao and Hyoduk Shin)

Government Regulation, Security, and Welfare in Network Economies (with Tunay Tunca)
  • Economics of software
  • Economics of information security
  • Organization of software firms
  • Production and operations management
  • Network policy and pricing
  • Platform economics
  • Dynamic cancer survival information