After reading “SAMPLE DATA BREACH NOTIFICATION” I found two different economics theories and two different social sciences theories that relate to the letter. From an economic standpoint, the data breach notification letter relates to both information asymmetry and cost-benefit analysis theories. Information asymmetry theory is seen in how the company reacts, upon discovering the breach, and has chosen to notify customers about potential risks despite not having evidence of actual misuse of their information. The letter also touches on cost-benefit analysis, as it tells the customers they can protect themselves against identity theft or fraud, by highlighting the potential costs financial losses, or inconvenience that might come as a result of the possible breach. From a social sciences lens, the breach notification letter closely relates to social contract theory and risk communication theory. Social contract theory is displayed by the way the company acknowledges its responsibility to inform customers about the breach and offers guidance on protective measures. The risk communication theory is seen when the letter tries to communicate complex information about the breach, and potential risks.
