Firm Information Technology Protection under Risk Preference Asymmetry

When firms share knowledge about information technology, the co-opetition relationship between the knowledge sender and the knowledge receiver often induces opportunistic behaviors, which leads to intellectual property risk. Each firm's perception of the other firm's risk preference affects each firm's judgment of the other firm's risk control effort, and then affects each firm's opportunistic behavior. Considering the risk preference is private information, and the firm disclosing false risk preference or the firm distrusting the risk preference disclosed by the other firm will be punished, this paper uses evolutionary game theory to analyze the equilibrium of the game between two information technology sharing firms when they disclose and process risk preference information. This paper finds the method to achieve the maximum benefits of two firms, the best effect of information technology protection and the optimal decision-making integrity. This paper contributes to the research on information technology protection.