Week 12 – Journal Entry 12

I think both psychological and economic theories are represented in the sample data breach notification letter from GlasswasherParts.com. Im pretty sure economically speaking the corporation seems to use cost benefit analysis by delaying disclosure in order to assist with a law enforcement research which could reduce legal risk and harm to the company’s reputation. Since the business initially knew more about the incident than the affected customers, it also shows information asymmetry. By recognizing the possible risks to clients and encouraging them to take action like keeping an eye on their bank accounts, the letter psychologically connects to risk perception theory. It also relates to cognitive dissonance theory since the business aims to rebuild consumer trust and ease their concern by providing support and a clear explanation of the circumstances.