INFORMATION COMMODITY

1. SeminarSeminar
onon
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

2. InformationInformation
as aas a
CommodityCommodity

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

4. 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 potentialsymbol or set of symbols which has the potential
for meaning.”for meaning.”
With reference to library andWith reference to library and
information science, information may be defined asinformation science, information may be defined as
the structure of any text which is capable ofthe structure of any text which is capable of
changing the image-structure of a recipient or anychanging the image-structure of a recipient or any
stimulus that reduces uncertainty.”stimulus that reduces uncertainty.”

5. What is CommodityWhat is Commodity
The “New Oxford Dictionary of English" definesThe “New Oxford Dictionary of English" defines
commodity as:commodity as:
1.1. ““a raw material or primary agricultural product the cana 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.”

6. InformationInformation as a commodityas a commodity
Today information is also valuableToday information is also valuable
commodity to every one. It is an indispensablecommodity to every one. It is an indispensable
raw material for decision makers for takingraw material for decision makers for taking
right decisions. To information has anright decisions. To information has an
economic value also in trans forming alleconomic value also in trans forming all
natural resources of any country into finishednatural resources of any country into finished
products. To marketing of information is doneproducts. To marketing of information is done
due to its significance and importance. It isdue to its significance and importance. It is
being demanded as information products andbeing demanded as information products and
services.services.

7. Economics of InformationEconomics of Information
Information has several properties that makeInformation has several properties that make
information a commodity.information a commodity.
 Supply of informationSupply of information
 Demand of informationDemand of information
 Cost of informationCost of information
 Price of informationPrice of information
 Market of informationMarket of information
 Consumers SurplusConsumers Surplus

8. Supply of Information CommoditiesSupply of Information Commodities
The information commodities that areThe 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
Price
o

9. Demand of informationDemand of information
CommoditiesCommodities
The demand for a good or service isThe demand for a good or service is
the quantity a consumer or consumers arethe quantity a consumer or consumers are
willing top purchase at a given pricewilling top purchase at a given price
level.level.
y
x
D
D
Demand of CD’s
Price
a
b
Q Q1
P
P1
o

10. Cost ofCost of InformationInformation
To produce output an organizationTo produce output an organization
must purchase and combine inputs. Themust purchase and combine inputs. The
cost of producing a unit of output is thecost 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.

11. Pricing of InformationPricing of Information
The price of information products areThe price of information products are
determined by supply and demand ofdetermined by supply and demand of
information products.information products.
d
d
d1
d1
d2
d2
s
s
s1
s1
s2
s2
p
p1
p2
Price
Demand & Supply
q q2 q1o

12. Market of InformationMarket of Information
CommoditiesCommodities
Market is a place where consumers andMarket is a place where consumers and
producers come together to buy and sell.producers come together to buy and sell.
S
S
D
D
E
P
Q
y
x
Demand & Supply of CD’s
Price
Market Equilibrium
o

13. Consumers SurplusConsumers Surplus
1 2 3
10
15
20
d
d
x
y
Price
Demand
Rs 10
Rs 5

14. Information is a PublicInformation is a Public GoodGood
Information can be modeled as both aInformation can be modeled as both a
commodity and a public good. When buyers andcommodity and a public good. When buyers and
sellers exchange information service or products insellers 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 beInformation services or products can also be
public goods. Books sold to libraries, newspaperspublic goods. Books sold to libraries, newspapers
shared by co-workers, computer software networkedshared by co-workers, computer software networked
among several work stations, a library journalsamong several work stations, a library journals
subscription and a telephone network are thesubscription and a telephone network are the
examples of information as a public good or services.examples of information as a public good or services.

15. No, it isn’t.No, it isn’t.
In spite of the fact that a large part of theIn spite of the fact that a large part of the
information business can does , treat informationinformation business can does , treat information
as a commodity, there is still a huge amount that isas a commodity, there is still a huge amount that is
provided freeprovided free..

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