{"id":78,"date":"2024-04-21T00:53:55","date_gmt":"2024-04-21T00:53:55","guid":{"rendered":"https:\/\/sites.wp.odu.edu\/agbenou04\/?p=78"},"modified":"2024-04-21T00:53:55","modified_gmt":"2024-04-21T00:53:55","slug":"week-12-journal-entry-12","status":"publish","type":"post","link":"https:\/\/sites.wp.odu.edu\/agbenou04\/2024\/04\/21\/week-12-journal-entry-12\/","title":{"rendered":"Week 12 – Journal Entry 12"},"content":{"rendered":"\n

Economic Theories<\/strong><\/p>\n\n\n\n

Information Asymmetry (Economics):<\/strong> According to this theory, in transactions, one party may possess information that is more or better than the other, resulting in power disparities and the possibility of abuse. The data breach itself is an example of information asymmetry in the context of the notification letter. As the company’s data custodian, it had access to information regarding the breach that its clients were unaware of until they received notification. If this knowledge asymmetry is not fixed right away, clients may experience negative outcomes like fraud or identity theft.<\/p>\n\n\n\n

Economics: <\/strong>Externalities are the results of one party’s actions that affect parties not involved in the transaction by causing costs or advantages to be imposed onto them. The impacted customers bear the unfavorable externality of the data breach and the notification that followed. Customers may suffer injury or inconvenience as a result of the company’s inadequate system security, which allowed for illegal access to client data. Customers must pay for this breach in terms of time, effort, and possible financial losses related to minimizing the effects of fraud or identity theft.<\/p>\n\n\n\n

Social Sciences Theories<\/strong><\/p>\n\n\n\n

Trust and Social Contract Theory (Social Sciences): <\/strong>In both social and business contexts, trust is essential. According to the social contract theory, people agree to give up some liberties in return for the security and advantages that institutions or societies offer. Customers of the business trusted it to manage their personal information securely, as stated in the breach notification letter. This implicit social contract between the business and its clients is violated by the breach, which could erode consumer confidence in the business and its offerings.<\/p>\n\n\n\n

Risk Perception Theory: <\/strong>This theory looks at how people see and react to risks. Following the data breach, impacted consumers can perceive a higher risk when it comes to the safety of their personal data when making purchases online. Their future actions, such as opting to support companies with more robust data security protocols or being more circumspect when disclosing personal information online, may be influenced by this increased sense of risk. Additionally, customers’ perceptions of risk and confidence in the company’s future ability to protect their data may be impacted by the way it responded to the breach, particularly in terms of communication efficacy and transparency.<\/p>\n","protected":false},"excerpt":{"rendered":"

Economic Theories Information Asymmetry (Economics): According to this theory, in transactions, one party may possess information that is more or better than the other, resulting in power disparities and the possibility of abuse. The data breach itself is an example of… Continue Reading →<\/a><\/p>\n","protected":false},"author":25812,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","wds_primary_category":0},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/sites.wp.odu.edu\/agbenou04\/wp-json\/wp\/v2\/posts\/78"}],"collection":[{"href":"https:\/\/sites.wp.odu.edu\/agbenou04\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sites.wp.odu.edu\/agbenou04\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sites.wp.odu.edu\/agbenou04\/wp-json\/wp\/v2\/users\/25812"}],"replies":[{"embeddable":true,"href":"https:\/\/sites.wp.odu.edu\/agbenou04\/wp-json\/wp\/v2\/comments?post=78"}],"version-history":[{"count":1,"href":"https:\/\/sites.wp.odu.edu\/agbenou04\/wp-json\/wp\/v2\/posts\/78\/revisions"}],"predecessor-version":[{"id":79,"href":"https:\/\/sites.wp.odu.edu\/agbenou04\/wp-json\/wp\/v2\/posts\/78\/revisions\/79"}],"wp:attachment":[{"href":"https:\/\/sites.wp.odu.edu\/agbenou04\/wp-json\/wp\/v2\/media?parent=78"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sites.wp.odu.edu\/agbenou04\/wp-json\/wp\/v2\/categories?post=78"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sites.wp.odu.edu\/agbenou04\/wp-json\/wp\/v2\/tags?post=78"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}