Read this https://dojmt.gov/wp-content/uploads/Glasswasherparts.com_.pdfLinks to an
external site. sample breach letter “SAMPLE DATA BREACH NOTIFICATION” and describe how
two different economics theories and two different social sciences theories relate to the letter.
The sample breach letter ““SAMPLE DATA BREACH NOTIFICATION” demonstrates key economic
principles, primarily rational choice theory and information asymmetry. Rational choice theory
suggests that both consumers and companies act in their own best interest. The company’s
decision to send the letter helped protect its reputation, maintain customer trust, and reduce
the risk of financial loss. At the same time, information asymmetry is seen in the months-long
gap between the breach and public notification. During this time, the company and platform
provider had more information than consumers, putting customers at risk without their
knowledge. The breach underscores how markets can fail when one party lacks critical
information, justifying regulation that requires transparency in such events.
From a social science perspective, social contract theory and situational crisis communication
theory both help explain the company’s response. Social contract theory is based on the idea
that customers entrust companies with private data in exchange for responsible stewardship of
that information. When that trust is broken, the company is expected to make amends.
Situational crisis communication theory applies here in how the letter frames the company as a
secondary victim of the platform provider’s failure, aiming to reduce reputational damage. By
explaining what happened, describing corrective steps, and providing customer guidance, the
company uses language that attempts to preserve consumer trust and fulfill its social
responsibility.