THE ECONOMIC VALUE OF INFORMATION (SUMMARY)

The article seeks to measure the economic value of information. Informational values may vary relative to one’s profession but it is said to be an expression of impacts or how it used.
Scholarly attempts to measure the value of information were examined under three themes using the three primary meanings of the word ‘Value’ as given by American College Dictionary (1968). These themes are:

1. INFORMATION VALUE AS “USE”: Here the value of information denotes solely an expression of how useful a piece of information is to the recipient. Informational value is frequently expressed as a derivation from communicational utility which also takes into consideration availability of data within an organisation, its flow to members of that organisation as well as impacts of those data to the structural organisation of the firm.

However, the article flawed this theme considering inaccurate findings of informational use using mathematical formulas.

2. INFORMATION AS “TRAFFIC”: This theme tries to evaluate the material or monetary worth of information as in traffic or sales. Porat (Porat 1977) in his study in 1977 discovered that the portion of U.S national economy involved with information was large and rapidly growing taking up 46% of Gross National Product (GNP) and earning 53% of labour income. A recent survey also shows a constant increase of revenue recorded with the online database industry as well as increased rate of electronic dissemination of information.

3. INFORMATION VALUE AS “COMMODITY”: Here information is seen as a unique commodity that is not consumed in its use but could be exchanged as well as used many times. Exchange value and use value of a commodity (information) were distinguished with commodity acting as the unifying factor between the two.

Pricing was deduced as an acceptable measure of value and a reliable indicator of exchange value when taken over time.

The article was concluded by given preference to valuing information in its commodity form since market price serves as a good indicator or measure for value.

NAME: UKAH TOCHI. U
REG NOS: MIM/EDUC/09791/2008-2009