(7) Knowledge 1

(7) Knowledge 1 - Info & Tech I Business Policy (4441)...

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1 Business Policy (4441) Prof. Benjamin Cole What is Information? Information is. ... Non-rivalrous Information can be used again and again without diminishing its value for any user. Compare with a block of wood, which can only yield a table or a chair. You cannot make a chair out of the table without diminishing the utility of the table. Cumulative Information is the key input into new information production (depends on non-rivalry).
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2 Arrow’s Paradox 1. Cost of transferring information is low 2. Cannot know value of information unless you know what the information is, but. .. 3. No WTP for info after you already know it What to do? Overcoming the Paradox Reputation (based on previous experience: Q t-1 Q t+1 ) Wall Street Journal = High Quality News WTP daily even if you don‟t know tomorrow‟s news today Certifications (presumes due diligence on part of the certifier) High quality partners Goldman Sachs vs. Benjamin‟s Bank when going public Third-party assessors Objective assessments: Based on data (SAT scores, % of students accepted, etc.) Subjective assessments: Based on opinions (surveys of graduates) Testimonials Warren Buffet blurb on back of book cover Sampling / Staggering Snippets of songs, Staggered deliverables Guarantees/Warranties Ad firms measuring impact of campaigns, which affects payment
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3 Patents Structured knowledge that may be sold/traded as an asset Thus auctions or acquisitions may be used to buy the knowledge
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(7) Knowledge 1 - Info & Tech I Business Policy (4441)...

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