The impact of technology on the quality of information

Authors:
Aditi Mukherjee;Jungpil Hahn
Affiliations:
Purdue University, West Lafayette, IN;Purdue University, West Lafayette, IN
Venue:
Proceedings of the ninth international conference on Electronic commerce
Year:
2007

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Abstract

When new technologies for production and dissemination of information emerge and are adopted, we see a dramatic increase in the quantity of information that is made available for consumption. However, the impact of these technologies on the quality of information is unclear. In this paper we develop a framework for the process of information production and use it as the basis for an economic model that captures a publisher's decision to produce information. This economic model is used to study the impact of a new technology on the supply of information that is produced in terms of both its quality and quantity. Our results show that reduction in costs and relaxation of capacity constraints lead to an increase and decrease, respectively, in the quality of articles produced by a publisher. We also find that the relaxation of the capacity constraints has a more profound impact on the supply of articles to the publishers, while the reduction in costs has a similar impact on the articles that are chosen for publication. These insights can be exploited to develop incentive mechanisms and policies to further increase the quality of information being produced.