This document discusses the economics of information. It defines information and economics, and explains that the economics of information studies how information and information systems affect an economy. The field first emerged in the 1960s due to fundamental changes in technology and the world economy. Economists and library scientists approach the study of information differently, but both try to understand the nature, distribution, and economic impact of information. Information is considered a commodity that can be bought and sold since it has value. The costs, prices, markets, and consumer surplus associated with information are discussed. Finally, the conclusion emphasizes that information plays an important economic role and its economics is an important area of study.

1. ECONOMICS OF INFORMATION
Presented BY
SHUVRA GHOSH
Roll – 07
Course: MLIS
Department of Library and Information Science
GUIDED BY: Prof. Udayan Bhattacharya

2. INFORMATION, ECONOMICS
ECONOMICS OF INFORMATION
 “All the facts, conclusion, ideas, creative works of the human
intellect and imagination that have been communicated,
formally or informally, in any form”.
(Online Dictionary for Library and Information Science)
 “A Social Science concerned chiefly with description and
analysis of the production, distribution, and consumption of
goods and services”.
(Merriam-Webster Dictionary)
 “Economics of information is a branch of microeconomic
theory that studies how information and information systems
affect an economy and economic decisions”.

3. Development of the field and Discussion
 First emerges in 1960s
 Fundamental changes in world economics
 Emergence of computer technology
Both sets of researchers attempt to refine models to explain for price, costs,
benefits, values and economic impact.
Economist Library and Information Scientist
Economist tend to study the nature of
decision making, the distribution of
information, the flow of information,
and the role of the ‘information
sector’ in a market context
Library and Information Scientist tend
to look at notions of what information
is and at information products as items
bought, sold, used, copy righted, made
public, or provided, particular in
libraries.

4. information and information systems affect economy
Information Systems: Information System is collection of
technical (hardware and software) and human resources that
provide the storage, computing and communication for the
information required by the organisation.
 Social Media
 Network Effects
 Electronic Markets
 Information Technology (IT)

5. Information as a Commodity
 The New Oxford Dictionary of English defines commodity as,
1. “A raw material or primary agricultural product that can be
bought or sold, such as copper or coffee”
2. “A useful or valuable thing such as water or time”
 Merriam-Webster defines commodity as,
 “something that is bought and sold; something or someone that
is useful or valued.”
It means commodity is something that can be bought and sold
and is useful.

6. Information as a Commodity
Information has several properties that make information a
commodity
 Supply of information
 Demand of information
 Cost of information
 Price of information
 Market of information
 Consumer surplus

8. The cost of information
• Information must be created, by generation and
processing of data; these are authoring functions.
• It must be assessed for publish ability; these are editorial
functions.
• It must be processed for the generation of a master; these
are composition
• Products or services will be produced.
• The products and services will be marketed.
• They will be distributed.

9. Information Services as Products
All information, products essentially involve a service component.
 Offline Information Services as Products:
 Online Scholarly Database Services as Products:
 Electronic Information Services for Professional Purposes as products:
 Electronic Information Services for Social Purposes as Products:
 Business Information Services as Products:
 Financial Information Services as Products:
 E-mail Services as Products:
 Electronic Information Storage Services:
 Real time information storage service as products:
 Audio text Services as Products:.

10. Information as goods
 Content: Content such as a book, eBook, website or
newspaper.
 Games: Games such as a video game.
 Media: Media such as movies, music and social media.
 Advice: Advice such as investing advice.
 Consulting: Consulting services that produce knowledge
products such as software or an analysis.
 Designs: Designs such as a logo for a brand.
 Data: Data services such as a competitive intelligence.
 Education & Training: Training and educational materials and
services.
 Research: Research such as a university research project that
documents a new finding in science.

11. Economic Properties of Information
• Content vs. carrier
• Use of limited physical resources
• Minimal reproduction cost
• Lesser transportation cost
• Priced according to consumer value
• Relationship between time and value of information
• Relationship between distance and value of information
• Differential usage
• Larger the accumulation more the value
• Information can be owned
• Information can be bequeathed

12. Economic Role of Information
 Information is essential for decision making in governance
 Management information systems help in the operational
management of the organizations
 Information has a very important role to play in the market
 Information is essential in education and research
 Information is essential to legislate
 Information is essential for the judiciary.
 Information is essential for armed forces.
 Information is the substance of the entertainment industry; be
it a feature film, theatre, TV or radio show.
 Information is vital for tourism and hospitality industry.

13. CONCLUSION
Economics of Information has played an important role in
understanding and evaluating information transfer system over
the past decade. Economics has been an integral part of all phases
of the evolution of information transfer systems including
information research, evolution, design, implementation,
operation. Economics of information observed in the literature
revolves around input, process, output comparisons of products
and services.
In this increasingly complex and dynamic world information is
very important for human as well as technical development.
Information has become a primary source of income and thus
economics of information has become an interesting and
important area of study.

14. THANK YOU