BU415 Lecture Notes - Lecture 3: Semiconductor Device Fabrication, Grid Computing, Sunk Costs
Document Summary
Data & information: data codified raw facts, things that have happened, coded as letters of the alphabet and numbers, increasingly stored digitally. Information intensive goods: most g/s are info intensive goods. Information plays a critical role in: creating the g/s, bringing it to the market. Information is customizable, reusable, often time-valued, and can produce significant profit margins. Economic characteristics: high production costs, negligible replication costs, negligible distribution costs, sunk costs, no natural capacity limits, not consumed by use, experience goods. Information in networks: physical carriers of information goods often prevent information goods from behaving like information goods, richness and reach trade-off, richness, reach: Amount of information that can be transmitted. Degree to which info can be tailored to individual needs. The number of possible recipients of the message: the internet and the technologies that leverage it have mitigated the trade-off between rich info and reach of message, however, the trade-off between reach and richness hasn"t been eliminated.
