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Distribution and use of knowledge under the “Laws of the web”


Falkinger, Josef (2007). Distribution and use of knowledge under the “Laws of the web”. CESifo Working Paper 2154, CESifo Group Munich.

Abstract

Empirical evidence shows that the perception of information is strongly concentrated in those environments in which a mass of producers and users of knowledge interact through a distribution medium. This paper considers the consequences of this fact for economic equilibrium analysis. In particular, it examines how the ranking schemes applied by the distribution technology affect the use of knowledge, and it then describes the characteristics of an optimal ranking scheme. The analysis is carried out using a model in which agents’ productivity is based on the stock of knowledge used. The value of a piece of information is assessed in terms of its contribution to productivity.

Abstract

Empirical evidence shows that the perception of information is strongly concentrated in those environments in which a mass of producers and users of knowledge interact through a distribution medium. This paper considers the consequences of this fact for economic equilibrium analysis. In particular, it examines how the ranking schemes applied by the distribution technology affect the use of knowledge, and it then describes the characteristics of an optimal ranking scheme. The analysis is carried out using a model in which agents’ productivity is based on the stock of knowledge used. The value of a piece of information is assessed in terms of its contribution to productivity.

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Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Language:English
Date:December 2007
Deposited On:09 Oct 2013 09:37
Last Modified:05 Apr 2016 17:02
Series Name:CESifo Working Paper
Number of Pages:31
Free access at:Official URL. An embargo period may apply.
Official URL:http://www.cesifo-group.de/de/ifoHome/publications/working-papers/CESifoWP/CESifoWPdetails?wp_id=14557402

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