The value of information as a theoretical foundation for Digital Ecosystems

Abstract

The concept of information is at the core of the digital network shaping a Digital Business Ecosystem. Determining the value of information in a DBE network is a relevant theoretical step since it would allow predicting benefits, market impacts and return on investments for firms acting in a Digital Business Ecosystem. However, estimating the value of information is a notoriously difficult operation. While the cost of information varies between being almost free on the Internet and up to billions paid for patents, the value of information is concealed behind the multitude of its roles: information about markets, information as a main product of a firm, information as an intangible asset of a firm, information as input into the strategic planning e.g. created by a think tank. Classical results in economics explain the signaling role of information in determining market equilibrium (Arrow-Debreu); the role of transaction cost economics in determining the size of firms (Coase) or the mechanisms behind the information flow within hierarchies of an organization (Harsanyi). Innovative information technologies and the new markets created by Digital Ecosystems require new research efforts in understanding the impact of all these factors in creating value. The talk presents a theory of value that unifies several of these aspects in a digital ecosystem space of firms, markets and information technologies.