The Economics of Communication and Information

Citation

Joseph, R. (1998), "The Economics of Communication and Information", Internet Research, Vol. 8 No. 1. https://doi.org/10.1108/intr.1998.17208aaf.009

The Economics of Communication and Information

The Economics of Communication and Information

Lamberton, D.M. (Ed.) (1996), Edward Elgar Publishing Ltd, Cheltenham, UK, 549 pp., ISBN 1-85898-294-4, £115.00. Available Marston Book Services Ltd, PO Box 269, Abingdon, Oxon, OX14 4YN, UK. Tel: 01235 465500; Fax: 01235 465555.

The Economics of Communication and Information is an anthology of relatively recent works in the general area of information economics. It forms the 70th volume of publisher Edward Elgar's series on the International Library of Critical Writings in Economics. The editor of this collection of some 31 seminal works in the field is Donald Lamberton, an Australian economist who has been at the forefront of research in information economics for many years. The scope of this edited collection is ambitious since it covers a broad range of intellectual themes, all embraced by the general description of information economics. Lamberton has attempted to underline his belief that an interdisciplinary approach is needed to understand the role of information in the economy and in doing so he has not been inhibited unduly by disciplinary boundaries and assumptions, such as those often presented by orthodox economics. The result is a collection of interdisciplinary breadth covering themes which include economics, information science, organisation science, management, technology and policy. The breadth is certainly its strength since Lamberton's introduction to the volume makes every attempt to explore common themes as well highlight differences.

Those with an interest in this field will probably recall Lamberton's earlier well-known anthology, Economics of Information and Knowledge (Penguin, 1971). The present work essentially updates the editor's view of where this field is heading since only four of the original articles survive into the new volume. Those surviving are classic works by Boulding, Marschak, von Hayek and Silberston. The articles are grouped according to parts in the book which have the following titles: overview; information, organisation and efficiency; macrorealities; management and technology; international aspects; information policy; selected classics; and new directions. While these themes may seem disparate to readers comfortable with thinking in terms of a specific discipline, their value will only be realised by readers who accept that a greater degree of movement between disciplinary boundaries is needed if our understanding in this area is to be furthered.

What Lamberton is essentially saying is that while information and knowledge have been traditionally important in economics, the discipline as it has evolved in orthodox terms has done little to improve our understanding of real world problems. Assumptions in economics about perfect knowledge and perfect competition, while giving a degree of disciplinary certainty, are poor foundations on which to promote understanding. As Lamberton says, "our disciplinary perspectives filter out quite a lot of what is actually out there to be seen" (p. xvii). However, despite this Lamberton is certainly not an economic anarchist. He sees considerable value, not from abandoning the traditions of economic thought, but rather by being broadminded enough to see its possibilities by linking it to other ventures and fields. Hence, I see this volume as an expression of this vision and its contributors as signposts towards the destination.

With contributors such as Arrow, Eliasson, Geertz, Marschak, Nelson, Simon, von Hayek and Macdonald there is no doubt of the intellectual pedigree of this volume. As a reviewer, I have a personal preference for the most appealing readings to me and on that score I would vote for Richard Nelson's 1981 article from the Bell Journal of Economics on "Assessing private enterprise," Stuart Macdonald's article in Minerva on "Controlling the flow of high technology information" and Kenneth Boulding's 1966 article on "The economics of knowledge and the knowledge of economics." However, all the chapters are carefully selected, challenging and excellent reading. In particular Lamberton's introduction suggests a range of research directions which he sees as valuable such as a taxonomy of information and a better understanding of organisational capital and information infrastructure.

In short, this anthology brings together some excellent and intellectually challenging material in the area of information and communication economics. The articles could well be an important stage in the establishment of a new discipline of information science which adequately takes into account economic considerations. Time will tell. Unfortunately, while an excellent volume with a good bibliography and name/author index, its price at £115 would put it out of reach of many readers. I give it my highest recommendation. It is an essential item for university libraries, scholars and researchers.

Richard JosephUniversity of Wollongong