The Glasswasherparts.com “Sample Data Breach Notification” letter may also be examined in terms of economic and social science perspective theories.

Economic Theories

Theory of Information Asymmetry: The theory maintains on the grounds that in a transaction, a party will typically possess more or greater quality data than the opposite party, and this may cause asymmetries. The company initially possessed more information about the breach data compared to its clients in this breach episode. The notice letter attempts to reduce this asymmetry by informing the clients about the breach so they become proactive about security.
Externalities: Not only do externalities harm the company, but also harm its customers whose data are violated. The effect falls on externalities affecting unforeseen third-party persons who were not privy to the initial trade. Through notifying its clients, the company attempts to mitigate adverse externalities by placing clients in a position where they are able to act, e.g., by tracking accounts.

Social Science Theories:

The Communication Privacy Management Theory: CPM discusses how individuals manage personal information. The breach notice letter illustrates how the company learns no longer to maintain its sole control over breach information but to reveal this information to victimized clients as well. There must be proper communication so as to manage the shared boundaries of privileged information.
Wikipedia Social Contract Theory: The theory postulates implied contracts among people and among institutions based on shared commitment agreements. Companies are trusted by clients with their personal data, and where there are failures, institutions are morally obligated to inform clients, acknowledging breach of such trust and attempting to rebuild trust by disclosure and attempting to correct it. From these theories, we are able to observe complex effects of data breaches and the advantage of immediate and transparent communication in maintaining trust and reducing harm.