Journal Entry #12

After reading the sample breach letter, I can see how economics and social sciences relate to it. One economic theory that connects is cost-benefit analysis because the company had to weigh the cost of sending out notifications against the possible legal or trust issues if they didn’t. Another economic theory is supply and demand since a breach can hurt the company’s reputation, lowering customer demand. From a psychological and social science view, trust theory applies because customers’ trust has been damaged, and the company needs to rebuild it. Another theory is Maslow’s hierarchy of needs, specifically safety needs, since customers now feel their personal information is unsafe. The letter tries to calm fears by offering free credit monitoring to help meet those needs.

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