INFORMATION OF ECONOMICS Introduction Information as an economic

INFORMATION OF ECONOMICS

Introduction Information as an economic resource in the material growth and development of a country. It is important to distinguish between Information Economics & Economics of information to grasp their full implications. Information economics perceives information as a resource of important in its own right and examines its role in all economic activities, as a factor of production, growth and development.

Economics of Information, however deals with the management aspect of information systems and services with reference to prudent planning in the disposition of resources so as to avoid unnecessary waste or expense.

Information Economics It is studied at the micro-level dealing with problems of information in terms of uncertainty, asymmetry of information between buyers and sellers in different types of markets. Such as Products market, Insurance market, Job market. Inadequate information may create a variety of problems.

Therefore, information flow in these situations has to be considered important to identify gaps and to establish information support facilities.

Information Economy is another aspect of Information Economics The components of information economy include Information Workforce; Information Goods and Services; Information Machinery; Information Industry and Markets; and Information Infrastructure.

Occupational distribution of the information workforce accounts for more than 50% of a country's GNP in Western countries. The influence of the different components of Information Economics on the general national economy of a country demands for special attention not only in developed but also in developing countries. Economics of Information deals primarily with the Financial Management of Information Institutions that include libraries.

The costing of library and information centres (services). The housekeeping operations of the library and many other activities have to be worked out in order to introduce costeffectiveness and cost-benefits. Pricing of information has also to be determined on the basis of cost as well as the market conditions.

The quality of information products and services alone would determine a sure and steady market. The study of Information Economics is valuable for library and information professionals at least for two reasons: 1. The recognition of information as a vital factor for material growth and prosperity of a country, reinforce our faith, efforts, commitments, and involvement in all our studies on information and knowledge; and 2. The expansion of job opportunities.

Characteristics of Information Economics is sharable, not exchangeable and can be given away and retained at the same time; Is expandable and increase with use; Is compressible, able to be summarised and integrated, etc. Is acquired at a definite measurable cost;

Pocesses are definite value, depending upon its user which may be quantified and treated as an accountable asset; may vary in value over time in an entirely unpredictable way; has a 'consumption rate' which may be quantified; is a amenable to the user of cost accounting techniques; and is a source of both economic and political power.

Information Economy Information has been conceived, since the last two decades, as the key factor in economic growth, production and development of a country. Advanced countries are evaluating as Information Economics ever more dependent upon a range of knowledge intensive information goods and services. Let us discuss in detail about Information Economics.

Components of Information Economy In his pioneering work on the production and distribution of knowledge in the United States published in 1962. Fritz Machlup depicted economic activity in terms of the establishment that produced knowledge and information goods and services, either for themselves or for use by others.

1. 2. 3. 4. 5. He devised a basic typology of information activities, which include: Education. Research & Development. Media of Communication. Information Machinery. & Information services.

On the basis of this he is indicated that 25% US GNP -1966 54% US GNP -1980

Information Workforce Information workforce no longer it is restricted to library and information professionals. It includes several other groups of information oriented occupations.

Information workforce Occupations Information products Create new information or package on existing information into appropriate form. Information process Receive and respond to information" as the basis for further action. Information distributors Convey information from the initiator to the recipient. Information Infrastructure Installation, operation and repair of the machines and technologies used to support information activities

ECONOMICS OF INFORMATION

Introduction Economics of Information is deals with the management of library/information systems and services with reference to product planning in the disposition of resources so as to avoid unnecessary waste or expense. Ø This deals with the important aspects of Information Management which deals with economic viability in library and information systems and services.

It is also important to effect monetary control over budget even under normal conditions. The current financial problems faced by libraries and information centres to find adequate funds for their activities. Forced the library and information centres to find adequate funds for their activities. Forced these institutions to look at the economics of running a library or an information centre.

There is also the pressure for accountability to the parent organizations which support its library and information services.

Library Services Public libraries have always been considered a public good. (In the economic sense) as the benefits of such a service would go to the entire economy they serve. Such services always are the responsibility of the governments and are, therefore, funded totally or partially by them.

But with the changing context of information even public libraries are beginning to look at the services from the point of view of markets because of the financial crunches and other competitive factors. In case of special libraries and information centres, their parent bodies consider them as part of their infrastructure facilities and make provision in their budgets to support them.

But here again, several economic pressures are beginning to be operated to, and there is presently a serious financial crunch. Under these circumstances, libraries and information centres will have to evolve rational approaches to make their services economically viable, at the same time ensuring quality. To be economically viable implies a practical or workable approach that would assure maintenance of quality in library and information services at minimum cost.

1. Costing all library operations and services, therefore, is an essential requirement to introduce economic viability. Unit costs have to be worked out for each of the housekeeping activities of a library. These would include collection building modes of acquisition, database creation for current acquisitions and retrospective conversation. IR, construction of vocabulary control tools and applications for subject approach.

2. Computer hardware and software, telecommunications and networks. 3. Other facilitation services like circulation, enquiry desks, photocopying services and infrastructure requirements. 4. If the services are to be marked, the pricing aspects need to be steadied

The importance of quality assurance in these can never be overestimated. Costing, Pricing and value will feature as important considerations of economic viability. Aspects that need attention in these services include and coverage of subject areas, means and methods of selection of items for inclusion. Preparation of user interest profiles, Periodical reports of publications, their formats and modes of production & distribution, use promotion etc.

Summary Information Economics & Economics of Information are distinct fields of study; The former perceives information as an economic resource in its own right and deals with all economic activities in which information is a factor of production, growth and development; The latter as an aspect of financial management of information institutions in prudent spending and avoidance of waste.