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Information goods are commodities that provide value to consumers as a result of the information it contains and refers to any good or service that can be digitalized.[1] Examples of information goods includes books, journals, computer software, music and videos.[2] Information goods can be copied, shared, resold or rented.[3] Information goods are durable and thus, will not be destroyed through consumption.[4] As information goods have distinct characteristics as they are experience goods, have returns to scale and are non-rivalrous, the laws of supply and demand that depend on the scarcity of products do not frequently apply to information goods. As a result, the buying and selling of information goods differs from ordinary goods. Information goods are goods whose unit production costs (including distribution costs) are negligible compared to their amortized development costs. Well-informed companies have development costs that increase with product quality, but their unit cost is zero. Once an information commodity has been developed, other units can be produced and distributed at almost zero cost. For example, allow downloads over the Internet. Conversely, for industrial goods, the unit cost of production and distribution usually dominates. Firms with an industrial advantage do not incur any development costs, but unit costs increase as product quality improves.[5]
^Vafopoulos, M 2012, ‘The web economy: goods, users, models, and policies’, Foundations and Trends in Web Science, vol. 3, no. 1-2, pp. 1-136.
^Varian, HR 2000, ‘Buying, sharing and renting information goods’, The Journal of Industrial Economics, vol. 48, no. 4, pp. 473-488.
^Ibid.
^Raine, A 2002, ‘A model for buying and renting information goods incorporating incomplete information’, Honours thesis, University of Queensland, Brisbane.
^Roy, J.; Haim, M. (2011). "Information Goods vs. Industrial Goods: Cost Structure and Competition". Management Science. 57. no. 1: 164–176. ISSN 0025-1909.
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Global Information