The value of information: Approaches in economics, accounting, and management science

This article reviews and analyzes research performed by economists, accounting researchers and management scientists in the field of economics of information. The main emphasis is on approaches taken to describe and measure the value of information. Economists define information as a phenomenon to reduce uncertainty and it is usually studied in terms of exchange values. Information markets and products, as well as information as a public good, are described. The approaches to the value of information favored by economists are (1) statistical decision theory approach, (2) equilibrium theory approach, (3) multidimensional value approach, and (4) cognitive approach. These approaches are discussed and concluded with cost‐benefit and value considerations of information. Some empirical studies are also presented. It is concluded that economic approaches based on ‘information theory’ have not achieved significant practical results in a general sense, but ‘classical’ economic approaches can and should be used in describing information products (and services) in terms of exchange values, as has been the case with other goods. But the cognitive approach, with analysis of the tasks performed, should be used simultaneously for describing the value‐in‐use of information. © 1989 John Wiley & Sons, Inc.