D. Daniel Sokol

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Don’t Acquire A Company Until You Evaluate Its Data Security

by Chirantan Chatterjee, D. Daniel Sokolvia Harvard Business Review
Tuesday, April 16, 2019

When Marriott International acquired Starwood in 2016 for $13.6 billion, neither company was awareof a cyber-attack on Starwood’s reservation system that dated back to 2014. The breach, which exposed the sensitive personal data of nearly 500 million Starwood customers, is a perfect example of what we call a “data lemon” — a concept drawn from economist George Akerlof’s work on information asymmetries and the “lemons” problem.