Economics of Information

1066 Words Jun 19th, 2018 5 Pages
Introduction

There have been discussions among scholars in developed countries regarding economics of information. Developed countries includes Australia, New Zealand, United States, Ireland, Germany, Japan, Canada and many more are countries that have a high level of development according to some criteria. The criterion is income per capita; countries with high gross domestic product (GDP) per capita would thus be described as developed countries. Another economic criterion is industrialization; countries in which the tertiary and quaternary sectors of industry dominate would thus be described as developed. More recently another measure, the Human Development Index (HDI), which combines an economic measure, national income, with other
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Information goods and services can be shared and consumed with other consumers at the same time, cannot be easily returned, perhaps these properties make information economics different from other forms of economics. For instance more than one person can enjoy a movie in a theatre simultaneously, more than one person can read the same book, view the same television program, and use the same web site. This property of information makes it a public or shared good. Usually it will involve high fixed costs of production but the cost of reproduction is just at lower marginal.

As we know, information managers make economic decision every day for their organization management. Each decision is a choice among competing alternatives, for example, a good manager must be good at choosing how to allocate and make use a fixed budget among employees, suppliers, computers, and many more expenditures. If a manager spends more money in one expense category, it will result in less to spend in another for instance, a public library director must choose whether to buy a new computer or a new photocopier. Besides, he or she may decide to open the library on Sundays or the extra money spent on staff and utilities to keep the library open could have been spent purchasing more books to support the library collections and holdings.

Information has played an increasingly more important role in several economies, particularly in
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