The value of information in economics- Dr. Sara Madani

The value of information in economics

•      The value of the information

􀂄 Basic principle: information is valued if the decision induced by this information improves an existing situation
Objective: Measure the value of information?

a- The information : a  good  &  a factor  of economic orientation

a.     Definition of a good

A good is an object produced by human intervention or available spontaneously in nature, capable of satisfying a human need for this function.
It is divided  between:

Goods: the goods we consume that have a subjective interest (meet the different needs of humans)

•      Production well (or usage): all goods which are used for the production of consumer goods. They have a useful objective since they are incorporated in the production process without really being related to the satisfaction of human  needs. They are also called "indirect goods."
For example: capital goods (capital technique), raw material.

§  Properties:

1.     Quantity

2.     Price

3.     Traded in a market :supply and demand (that will be detailed hereafter)

Supply: quantity of a good that producers wish to sell at a given price. Its main determinants are market prices and production costs. there is a positive relationship between price and quantity supplied

Demand: quantity of a product that is required by individuals at a given price level. The level of demand evolves inversely to prices