The Economics of Information

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Various Aspects of Economics of Information 3.1 Economics of information in Education According to Farid (2007), economics of information is based on the concept that quality information is a scarce and valuable resource. The production and dissemination of information in education constitute two major economic activities, with associated costs and benefits. The value of information depends on its degree of accuracy, completeness, timeliness, reliability, and relevance to issues under consideration. Information possessing these qualities is expected to help in decision-making by both the consumers and suppliers of education. Information is an economic good because scarce resources are employed in its production and dissemination. The production of information as a "life cycle," beginning with the existence of a "source" of information. This source becomes a "resource" via the processes of selection, editing, abstracting, indexing, and classification. The final stage of the cycle, "dissemination," occurs once the resource is packaged and made available to users. Costs are incurred at every stage of this "life cycle." Information is thus a product that, in some instances, is subject to the laws of supply and demand, for instance data available through Education Resource Information Center (ERIC) and other online databases. The dissemination of information conveys some benefits including reduces or minimizes the costs to the user of time and effort spent searching for information, ensure the effective use of information through filtering processes which evaluate and tailor data to suit specific user needs, promotes efficiency by preventing waste and duplication of effort, while providing for the sharing of ideas across fed... ... middle of paper ... ...:// Rowley, J. (1997). Principles of price and pricing policies for the information marketplace. Library Review, 46(3), 179-189. Sawhney, M., & Maria, E. D. (2007). The real value of B2B from commerce towards interaction and knowledge sharing. Retrieved March 11, 2011, from: Shapiro, C., & Varian, H. R. (1998). Versioning: The smart way to sell information. Harvard Business Review, 106-114. Sloman, J. (2003). Economics (5th ed.). England: Prentice Hall. Stiglitz, J. E. (2000). The contributions of the economics of information to twentieth century economics. The Quarterly Journal of Economics, 115 (4), 1441-1478. Retrieved March 11, 2011, from: Webster, F. (2002). Theories of the information society ( 2nd ed.). London: Routledge.
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