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.
- Economic Theories: The breach ties into Transaction Cost Economics, where the failure of the company’s security increases the costs for both parties and Moral Hazard, where the platform provider may not have faced the full consequences of their security failure, leading to risky behavior.
- Social Science Theories: It connects to Social Exchange Theory, where the breach undermines the mutual benefits expected in the customer-company relationship, and Labeling Theory, where the company risks being socially stigmatized and losing customer trust, leading to long-term reputational damage.Both sets of theories help explain the broader consequences of the breach, not only in terms of financial costs but also social and behavioral impacts on both individuals and the company involved.