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Price Formation In The Information Economy: Specific Features Of The Infodocumentary Market

Author

Listed:
  • BERECHET, Mirea – Gheorghe
  • MIREA, Miruna – Mihaela
  • NEDELCU, Andreea – Raluca

    (Romanian Academy Library, Romanian Academy, Calea Victoriei no. 125, Sector 1, Bucharest, Romania
    Romanian Academy Library, Romanian Academy, Calea Victoriei no. 125, Sector 1, Bucharest, Romania
    Romanian Academy Library, Romanian Academy, Calea Victoriei no. 125, Sector 1, Bucharest, Romania)

Abstract

Neoclassical growth models conceptualize knowledge as a private good subject to the rules of perfect competition. However, this perspective raises questions regarding the specificity of information and the limits of conventional market mechanisms in the knowledge domain. While classical production factors are consumed in the production process and recovered through the market realization of outputs, information and knowledge do not follow these standard patterns. Information integrated into production contributes anticipatively to achieving outcomes (feed-forward) without being consumed. It functions analogously to a catalyst: it facilitates transformations within the production process yet remains intact and can even increase in value through its use. Unlike classical economic markets, where demand and supply pertain to the same entity, the infodocumentary market is characterized by a structural disjunction: demand targets knowledge, whereas supply provides information. The defining feature of this market, without parallel in standard economic theory, lies in the existence of two equilibrium points, corresponding to two distinct transaction prices.

Suggested Citation

  • BERECHET, Mirea – Gheorghe & MIREA, Miruna – Mihaela & NEDELCU, Andreea – Raluca, 2025. "Price Formation In The Information Economy: Specific Features Of The Infodocumentary Market," Journal of Financial and Monetary Economics, Centre of Financial and Monetary Research "Victor Slavescu", vol. 13(1), pages 172-183, October.
    • Handle: RePEc:vls:rojfme:v:13:y:2025:i:1:p:172-183
    DOI: https://doi.org/10.65672/jfme.2025.1.16
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    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    3. Michael Buckland, 1991. "Rejoinder to “Information as thing”," Journal of the American Society for Information Science, Association for Information Science & Technology, vol. 42(10), pages 758-758, December.
    4. Michael K. Buckland, 1991. "Information as thing," Journal of the American Society for Information Science, Association for Information Science & Technology, vol. 42(5), pages 351-360, June.
    5. Joseph E. Stiglitz, 2000. "The Contributions of the Economics of Information to Twentieth Century Economics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(4), pages 1441-1478.
    6. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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    More about this item

    Keywords

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    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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