The presented letter discusses the evolving landscape of bug bounty programs, emphasizing their significance in identifying vulnerabilities and enhancing cybersecurity. The literature review underscores a shift in attitudes towards vulnerability disclosure policies (VDPs) and bug bounty initiatives, highlighting the growing acceptance of these practices.

The findings emphasize the substantial number of companies lacking VDPs, leading to a reluctance among security researchers to report vulnerabilities due to fears of legal repercussions. However, positive changes are noted, with influential figures like the US Deputy Attorney General and the Department of Homeland Security advocating for VDP adoption.

The letter explores the burgeoning bug bounty market, where freelance security researchers play a pivotal role in identifying bugs in corporate IT systems. Notably, the literature points out the limited empirical study in this field, identifying a gap that the presented paper aims to fill. The methodology section outlines a comprehensive approach, leveraging HackerOne’s extensive database to explore factors influencing bug bounty program effectiveness.

Key factors discussed include program age, industry, brand profile, bounty amount, time to resolution, revenue, scope, and the impact of new programs. The findings challenge some assumptions, revealing that hackers exhibit price insensitivity, and a company’s size and profile do not significantly impact the number of vulnerability reports.

The letter acknowledges certain limitations, such as omitted variables like report severity and scope, potentially affecting parameter estimates. However, the study provides valuable insights, estimating hacker price elasticity for the first time in academic literature and challenging preconceptions about bug bounties being exclusive to large companies.

In conclusion, the letter contributes significantly to understanding bug bounty programs by bridging empirical gaps, addressing key industry-related questions, and presenting a robust methodology. The literature review and findings underscore the dynamic and transformative nature of bug bounty initiatives in contemporary cybersecurity practices.