The Economics of Information

The Economics of Information explores how access to, quality, and costs of information influence decision-making in markets. Like any resource, information has value—it can reduce uncertainty and improve choices. When consumers or businesses have better, cheaper, or more timely information, markets tend to function more efficiently, leading to better prices and outcomes. Conversely, limited or costly information can cause market failures, misjudgments, or exploitation. Understanding these dynamics helps explain behaviors in finance, healthcare, and other sectors, emphasizing the importance of transparency, information flow, and the factors that affect the availability of reliable information.