information economics melanie j. norton, “ introductory concepts in information science ”...
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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
le Eas
t
North A
mer
ica
Latin
Americ
a
Ocean
ia
World
Tota
l
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?