Seminar Seminar on on

Information as a CommodityInformation as a Commodity

Presented by :-Presented by :-

Nirmal SinghNirmal Singh

M.A,M.ED,M.LIB. SC,M.Phil, UGC NETM.A,M.ED,M.LIB. SC,M.Phil, UGC NET

Dept. of Library & Information ScienceDept. of Library & Information Science

Kurukshetra University, KurukshetraKurukshetra University, Kurukshetra

Information Information as a as a

CommodityCommodity

IntroductionIntroduction

In the UK in the 1980’s there was a In the UK in the 1980’s there was a heightened awareness of the commercial value heightened awareness of the commercial value of information with the publication of a report of information with the publication of a report entitled “Marketing a Business of entitled “Marketing a Business of Information” which had been produced by an Information” which had been produced by an advisory group to the Government’s Cabinet advisory group to the Government’s Cabinet Office called the Information Technology Office called the Information Technology Advisory Panel (ITAP). Advisory Panel (ITAP).

What is InformationWhat is Information

1.1. According to J.BeekerAccording to J.Beeker “Information is a “Information is a collection of statements, facts and the figures.”collection of statements, facts and the figures.”

2.2. According to Faibisoff & ElyAccording to Faibisoff & Ely “Information is a “Information is a symbol or set of symbols which has the potential symbol or set of symbols which has the potential for meaning.” for meaning.”

With reference to library and With reference to library and information science, information may be defined as information science, information may be defined as the structure of any text which is capable of the structure of any text which is capable of changing the image-structure of a recipient or any changing the image-structure of a recipient or any stimulus that reduces uncertainty.”stimulus that reduces uncertainty.”

What is CommodityWhat is Commodity

The “New Oxford Dictionary of English" defines The “New Oxford Dictionary of English" defines commodity as:commodity as:

1.1. ““a raw material or primary agricultural product the can a raw material or primary agricultural product the can be bought or sold, such as copper or coffee.be bought or sold, such as copper or coffee.

2.2. A useful or valuable thing such as water or time. A useful or valuable thing such as water or time.

The “concise Oxford dictionary” has:The “concise Oxford dictionary” has:

1.1. ““an article or raw material the can be bought or sold, an article or raw material the can be bought or sold, especially a product as opposed to a service.especially a product as opposed to a service.

2.2. A useful thing.”A useful thing.”

InformationInformation as a commodityas a commodity

Today information is also valuable Today information is also valuable commodity to every one. It is an indispensable commodity to every one. It is an indispensable raw material for decision makers for taking raw material for decision makers for taking right decisions. To information has an right decisions. To information has an economic value also in trans forming all economic value also in trans forming all natural resources of any country into finished natural resources of any country into finished products. To marketing of information is done products. To marketing of information is done due to its significance and importance. It is due to its significance and importance. It is being demanded as information products and being demanded as information products and services.services.

Economics of InformationEconomics of Information

Information has several properties that make Information has several properties that make information a commodity.information a commodity.

Supply of informationSupply of information Demand of information Demand of information Cost of information Cost of information Price of informationPrice of information Market of informationMarket of information Consumers Surplus Consumers Surplus

Supply of Information CommoditiesSupply of Information Commodities

The information commodities that are The information commodities that are produced on a given price level .produced on a given price level .

y

x

S

S

Q Q1

P

P1

Supply of CD’s

Pric

e

o

Demand of information Demand of information CommoditiesCommodities

The demand for a good or service is The demand for a good or service is the quantity a consumer or consumers are the quantity a consumer or consumers are willing top purchase at a given price willing top purchase at a given price level.level.

y

x

D

D

Demand of CD’s

Pric

e

a

b

Q Q1

P

P1

o

Cost ofCost of InformationInformation

To produce output an organization To produce output an organization must purchase and combine inputs. The must purchase and combine inputs. The cost of producing a unit of output is the cost of producing a unit of output is the combine costs of the inputs.combine costs of the inputs.

Fixed .Fixed . variable cost.variable cost. Marginal cost.Marginal cost. Average cost.Average cost. Total cost.Total cost.

Pricing of InformationPricing of Information

The price of information products The price of information products are determined by supply and are determined by supply and demand of information products.demand of information products.

d

d

d1

d1

d2

d2

s

s

s1

s1

s2

s2

pp1

p2Pric

e

Demand & Supplyq q2 q1o

Market of Information Market of Information CommoditiesCommodities

Market is a place where consumers and Market is a place where consumers and producers come together to buy and sell.producers come together to buy and sell.

S

SD

D

EP

Q

y

x

Demand & Supply of CD’s

Pric

e

Market Equilibrium

o

Consumers SurplusConsumers Surplus

1 2 3

10

15

20

d

d

x

yPr

ice

Demand

Rs 10

Rs 5

Information is a PublicInformation is a Public GoodGood

Information can be modeled as both a Information can be modeled as both a commodity and a public good. When buyers and commodity and a public good. When buyers and sellers exchange information service or products in sellers exchange information service or products in market ,information is a private good or commodity.market ,information is a private good or commodity.

Information services or products can also be Information services or products can also be public goods. Books sold to libraries, newspapers public goods. Books sold to libraries, newspapers shared by co-workers, computer software networked shared by co-workers, computer software networked among several work stations, a library journals among several work stations, a library journals subscription and a telephone network are the subscription and a telephone network are the examples of information as a public good or services.examples of information as a public good or services.

No, it isn’t.No, it isn’t.

In spite of the fact that a large part of the In spite of the fact that a large part of the information business can does , treat information information business can does , treat information as a commodity, there is still a huge amount that is as a commodity, there is still a huge amount that is provided freeprovided free..

ConclusionConclusion

I have come to the conclusion that I have come to the conclusion that information is a commodity that can be traded information is a commodity that can be traded and can, in fact, be bought and sold to make and can, in fact, be bought and sold to make profit. It is still. However, also provided for profit. It is still. However, also provided for free even in established organization. For free even in established organization. For instance, a beneficent management purchases instance, a beneficent management purchases information from the providers and then information from the providers and then makes that information available ,free to makes that information available ,free to charge to its staff.charge to its staff.