Economics of Information Products

In this chapter, we explore the economics of information products and services. Principles textbooks always need some applications to illustrate the principles in action -- and given the growing importance of information products in the modern economy, this seems a good field for illustrations of the theories of monopoly and quasi-public goods

You Need To Know

• The Neoclassical Perspective
• Supply and Demand
• Introduction to The Theory of Demand
• Productivity and Supply
• Cost and Supply
• Competition
• Efficient Allocation of Resources
• Monopoly
• Public Goods

Begin the chapter

1. Introduction
2. Definition
3. Economic Characteristics of Information Products
   • Media of Transmission
   • Uniqueness
   • High Fixed Costs
   • The Incentive Problem
   • Intellectual Property
4. Patents
5. The Optimal Lifetime of a Patent
6. Other Forms of Intellectual Property
7. Limitations of Intellectual Property
   • Demand effects.
   • Transaction Costs.
   • Nonprotectable Products.
   • The Fixed Cost Problem.
8. Information as a Quasi-Public Good
9. Horse-Race Effects
10. Information Oversupply
11. Summary

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