Journal 11

The letter describes a data breach incident involving a website, and while it doesn’t explicitly mention economic or social science theories, we can draw connections to relevant concepts’ incident involves a third-party platform provider that experienced an intrusion, leading to unauthorized access to customer data. Game theory can be applied to analyze the strategic interactions between the company, the platform provider, and the hackers. It could explore the incentives and decision-making processes of each party involved in this cybersecurity “game.” The delayed notification to customers due to the ongoing investigation and the platform provider discovering the breach later reflects information asymmetry. Economic theories, particularly those related to information economics, could be applied to study how the delay impacts customer trust and market dynamics. Concepts like adverse selection and moral hazards may come into play. Social identity theory explores how individuals categorize themselves and others into social groups. In the context of the data breach, customers who made online purchases on www.glasswasherparts.com form a social group affected by the incident. This theory could be used to understand how the breach might impact customers’ perceptions of their online identity and trust in e-commerce platforms.