We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What Is Information Good?

M. McGee
By
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

An information good is something that is valued for the information it contains rather than the material of which it is made. A common example of an information good is a book. The paper and glue that makes up the material part of the book is not what generates the price of the good. The price is derived from the material written and drawn on the pages. These goods are in contrast to a material good, whose value comes from the material of which it is made and the final shape it takes.

What actually makes up an information good is often not as direct as material goods. In most cases, books, magazines, music, and movies are information-based and the physical method of delivery is unimportant. These terms were extended to software, documents and other computer-based materials as those items became more common.

Even though an information good is valued for its content, it will typically have a physical component as well. Books are made of a variety of papers, glues even textile products such as string or fabric, and software will typically come packaged in a box made of paper and plastic. While these physical components of the goods are material, the actual value of the good is only marginally influenced by its cost. If a video game package didn’t give access to the actual game, it is unlikely that consumers would place any value on the product.

Some information goods are more likely to exist as simple information. One of the earliest examples of this is paid television broadcasts; a consumer would pay for the service of having information sent to him through his television. The actual displayed programs were purchased information that utilized a material good — a television — for consumer interaction. A more modern example is online software. Users may purchase the software online and then download it to a computer, making the entire good electronic.

While the rules governing material goods are very straightforward, the ones that govern information goods are not. Since an information good may be perfectly copied without destroying the original, the final ownership of information will often become unclear. For example, if a person owns a piece of music and copies it to give to his friends, that is illegal, unlike a material object, which is generally free to give away. In that case, the ownership of that music is in doubt. The consumer may have purchased the music, but he only has partial rights over it.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
M. McGee
By M. McGee
Mark McGee is a skilled writer and communicator who excels in crafting content that resonates with diverse audiences. With a background in communication-related fields, he brings strong organizational and interpersonal skills to his writing, ensuring that his work is both informative and engaging.

Related Articles

Discussion Comments
M. McGee
M. McGee
Mark McGee is a skilled writer and communicator who excels in crafting content that resonates with diverse audiences....
Learn more
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.