Two economic theories that relate to the example breach letter are rational choice theory and laissez-faire economic theory. Rational choice theory states that entities make choices in their best interest. Regarding this data breach notification, it is well within the organization’s best interest to notify its consumers of the breach. If they did not do so, they would be subject to not only government penalty, but potential class action lawsuits. Although they still may be subject to these consequences even with sending out this notification, the penalties will be substantially less with them doing so.

The other economic theory of laissez-faire explains that the government is only to interfere in the economy unless citizens unalienable rights are being infringed. When applied to this notification letter it is clear the government is reacting to and ensuring that the company does not infringe on the company’s consumer rights by ensuring they are aware their data privacy has been compromised.

Two different social science theories that relate to this example breach letter are interactionalist theory and conflict theory. Interactionalist theory states that human behavior is heavily influenced by behavior and symbolism. Regarding the data breach notification, how the greater public perceives this notification determines by in large how the reputation of the company is affected. If people see this notification as a sign that the organization is holding themselves responsible and being honest, this could positively affect their reputation, regardless of the company’s intent with sending the letter.

For conflict theory, it states that society is in perpetual conflict for resources that are less than what is demanded by society. Regarding this data breach notification letter, the cause of the breach itself is explained by conflict theory, as someone determined their need to obtain this data and commit financial crimes is due to their own knowledge that they are competing against others for these resources and they want to come out ahead by any means necessary.