Reasonably Simple Economics: Why the World Works the Way It Does

The Economics of Information or Knowledge

We All Want to Know What You Know

What do the following have in common: the surprising difficulty of making a rubber band, a car warranty, the questions a car salesperson asks you shortly after meeting you, and the rise and fall of the Sony Corporation? Unless you have an unusual gift for the economics of information, you may say nothing, at least on first reading. But it turns out they are all implications of information being scarce and therefore costly. That information is costly follows immediately from the fact that it has value and requires the expenditure of resources to acquire. But this simple ...