Rational Choice Theory: This theory says people make decisions to maximize their benefit. After the breach, Glasswasherparts.com had to decide if the cost of beefing up security was worth it compared to the potential loss from future breaches. Clearly, they chose to invest in better security to avoid bigger losses down the line (Module 11 Notes, p. 13). Cost-Benefit Analysis (CBA): This involves comparing the costs of actions to their benefits. The company hired a cybersecurity firm and cooperated with law enforcement, which isn’t cheap. But the benefits, like preventing more breaches and maintaining customer trust, outweigh these costs (Module 11 Notes, p. 11).  Behavioral Economics: This theory looks at how psychological factors affect economic decisions. Customers might hesitate to shop with Glasswasherparts.com again after the breach. By being transparent and taking strong action, the company aims to rebuild trust and reassure customers (Module 11 Notes, p. 11). Social Contract Theory: This theory is about the unwritten agreement between people and authorities. Customers trust companies to protect their data. When Glasswasherparts.com failed, they had to act quickly to restore this trust by communicating openly and fixing the issues (Module 11 Notes, p. 13).