Google offering rewards for Chrome hacking

Economics Economics Questions
1

http://arstechnica.com/business/news/2012/02/google-pledges-1-million-in-cash-to-hackers-who-exploit-chrome.ars

But… why would a private firm work to improve their product’s safety? And they’re giving away money! What is going on?!

2

Also, I noticed a few days ago the private market regulation of VeriSign on the internet. Gasp!