Fundamental questions of financing and pricing information services

Abstract

In developed societies information is being recognized increasingly as a very important asset which should be managed the same way as other resources and which needs an appropriate information policy. Information is no longer restricted to scientific and technical information; the so called "information sector" is the fastest growing sector in national economies. The two fundamental issues of information policy are, (i) whether information is a "private good" or a "public good", and (at whether information is a free service or a fee should be charged for it. The answer to the first question is that information belongs to the group of "public goods" which can be offered by private enterprises only at prices such that certain groups of citizens are excluded from their consumption. The answer to the second question is that principally fees should be charged for the use of any publicly financed goods or services, but the application of this principle may be limited for various social reasons.