Theories of Economics:

1. The concept of game theory – Game Theory can be used to examine the strategic relationships that may have existed between the compromised business, the impacted parties, and possible enemies following a data breach. It investigates the motivations and decision-making procedures used by each side to respond to the breach and modify their security protocols.
2. Asymmetry in Information: The unequal distribution of knowledge between the compromised company and its clients is highlighted by economic theory pertaining to information asymmetry. This asymmetry is addressed by the breach notice, which gives impacted parties the knowledge they need to decide how best to secure their personal information.
3. The Theory of Social Contract: – The breach notification incorporates Social Contract Theory aspects by admitting the violation, accepting responsibility, and stating the company’s resolve to make things right. This theory emphasizes trust and reciprocal responsibility as it examines the unspoken agreements that exist between people and organization.