Information Economics

Melanie J. Norton, “Introductory Concepts in Information Science” Chapter 6, “Information Economics” Chapter 7, “Interpretations of Value”

pp 79-107, Information Today Inc., 2000

Lester & Koehler, “Fundamentals of Information Studies”Chapter 8, “The Economics of Information”

pp 161-178

Discussion led by: Kevin Lynch, Ed Sobczak, Raja Sztorc, Lucinda Steinhauser, and Elizabeth Teegarden

What is Economics?

Activities undertaken to provide for the satisfaction of desires based on production and consumption.

Traditionally, economic analysis is focused on resource scarcity, demand, supply, and exchange.

Introductory Questions

Why were we asked to read Chapter 6, with all the economics lessons?

Why did we read this combination of chapters (that is, how are they related)?

What could informatics/information science students gain from all of this information?

Information as an Economic Entity

Technology Haves and have-nots

Is information a resource? How does it differ from traditional

resources? Is information a commodity?

Internet Population Penetration % in 2006

01020304050607080

Africa

Asia

Europe

Midd

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North A

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Latin

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Ocean

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World

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http://www.internetworldstats.com/stats.htm

Do you agree?

“However information is perceived and treated in the past, it is being treated more and more as a commodity that can be owned, controlled, and traded in the market.”

Applying Economic Models

What is the difference?

Macro Economics

Micro Economics

Information as a Commodity

Shannon-Weaver model and Economics of Information

Traditional Value Propositions Cost/benefit analysis. Public Goods?

Renovation and Mutation Organizational Impact Uncertainty and Models Role of the Government

Traditional Value Propositions

What are the differences between resources in the traditional economic sense and information as a resource?

Why is this distinction important?

Value of Information

Is the price we pay for information reflective of the quality of information?

How do we price information in our daily lives?

What is the value to us if we buy a book or a magazine or print a document?

Measurability of Information

Buying a house vs. buying a software program

Why is a contractor not entitled to improvements on a house, but a programmer is entitled to improvements based on his database?

Renovation and Mutation of Information

With Renovation it is easy to see how new valuable information can be produced.

How viable is the mutation process as a source of new useful information? Author states that errors in chemical formulas

and errors in interpretation can lead to better results?

How often does this happen? Examples?

Organizational Impact

What are the consequences of integrating communication technology into an increasing number of organizations, such as libraries, schools, government processes? Efficiency? Ease of use? Investment $$$? Reliance on communication channels? User training?

Uncertainty and Game Theory

How does this relate to Information Economics? Reduced uncertainty leads to increased

information value? Research is set up with a set of specific

rules to yield valuable results?

Creating and Applying Models

How do we define and use a model as described in the reading? A documented research process? An experiment that can be repeated

and examined to allow for further investigation into the subject matter?

Role of Government in Information Economics

Should the public know all information exchanged among individuals? Communications between officials? Role of the media?

Role of Government in Information Economics

Should all information dissemination be a political process? information classified depending on

what kind of ‘good’ it provides, also on who is creating the information

Role of Government in Information Economics

What role do political agendas play in the advancement of research, availability of information, and application of information?

Is government intervention in these matters a good thing? Alternating policies between administrations

causing setbacks? Providing grants and means for information to

spread? Specific examples?

Applications of Information Technology

Manufacturing and industry use information technology to improve timeline estimates on projects and to enhance competitiveness by saving money for customers by meeting or beating deadlines.

The use of better gathering and implementation of information from point of sale by large retailers improves product purchasing, helps maintain balance of inventory, identifies regional product preferences.

Applications of Information Technology

How many people have noticed certain companies that have changed to or evolved to help the consumer’s needs and wants?

Applications of Information Technology

As technology improves and we become more of a faceless society, how will this impact our culture? Good or bad?

Applications of Information Technology

As technology grows and we become more and more dependent on it, how will this effect the business in the future?