Economic Theories:
Both cost and benefit and game theory relate to the letter almost directly. The cost-benefit
theory relates as the company in question weighted the options of when to tell the public and to
put out this email and how to tell the public. Both of the options had risks involved and the
company had to mitigate that risk.
Incentives Theory
Incentives theory is the theory that states individuals act on the perceived punishments or
rewards. In this case, the company did not want to have the punishment of losing customers. Also
I assume there is a punishment from the government and a fine for not telling your customers
their information was in a data breach.
Social Sciences Theories:
This letter relates to the social contract theory as there is a social contract between a
company and both its customers and employees. This relates to it as the company
acknowledges how they are overall responsible for the customer’s private personal information.
The company being transparent regarding a data breach acknowledges that there is a social
contract that broke.
The trust theory is how companies try and rebuild trust from their customers
from a mistake they made. This is shown in the email as the company has shown what they are
going to do in response to this data breach. Within the email it says how they have taken steps
to contact law enforcement and how in the future they can prevent this.<\/p>\n","protected":false},"excerpt":{"rendered":"
Economic Theories:Both cost and benefit and game theory relate to the letter almost directly. The cost-benefittheory relates as the company in question weighted the options of when to tell the public and toput out this email and how to tell the public. Both of the options had risks involved and thecompany had to mitigate that… <\/p>\n