Economics and Social Science

In some ways, economics helps cyber professionals understand cyber attacks from a monetary perspective. In economics, there are a couple of theories that explain how economies work. Also in some ways, social science helps cyber professionals understand cyber attacks from a behavioral perspective and the theories from this field further explain social and behavioral aspects in society.  However, with both of these combined in cybersecurity, these further explain how actions in the network can affect the company and the costs afterward.  In the sample data breach letter, the company, Glass Washer Parts, explains to the customer how their website has been hacked by a malware intrusion from one of their third-party providers’ systems. Two economic theories that relate to this breach are Rational Choice and Classic Economic theory. Also, two social science theories that relate to this are the Social Exchange and Conflict Theory.

The rational choice theory is when businesses make choices in their best interest. In the letter, it states that the company has chosen a third-party provider or company to operate their website. Third parties provide products and services to the customer which provides better marketing and reputation for the company. However, by their website being breached from the third-party system, the company could also choose to invest in more security software or cybersecurity products to protect and prevent these attacks from happening again. Since the customers provide their credentials to buy from this website, the supply and demand for this company is given for which the Classical economy theory suggests that these needs are met by the participants. The social exchange theory studies the relationship of two parties that implement a cost-benefit analysis to determine risks and benefits. Lastly, the conflict theory emphasizes how the elite exploits the poor. In this case, the poor(the hacker) exploit the elite(the company) for monetary gain. 

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