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Supply and demand dictates that an infinite resource has zero value. And as such, all electronic content has no value That's the reason we used to pay for news

Supply and demand dictates that an infinite resource has zero value. And as such, all electronic content has no value That's the reason we used to pay for newspapers but won't pay for online news (and have no need for newspapers)

dredmorbius 4y ago
The zero-marginal-cost dilemma results in a market price of 0. That does not mean a use value of 0. And with any level of fixed costs, there is a nonzero production cost. Market function in this case is highly inefficient as it results in underprovisioning and a deadweight consumer loss of value. Sometimes the marketis the wrong tool for the job. Finally: you're also misstating what the marginal cost dilemma is. Resources need not be infinite, but rather either non-excludable or with marginal cost below average cost. Both can occur with an otherwise finite good or service. And an infinite resource might face other limitations which result in a nonzero price. The Universe could well be infinite in dimensions. Even were this the case, such that space is unlimited, lack of access to that space would result in nonzero land prices on Earth for humans. (Paul Krugman actually wrote a paper on the economics of a space-colonising civlisation early in his career. I don't recall his specific argument or of it parallels my own here, but it might make interesting reading.)
- collaborative 4y ago
  I dont understand what the issue is with what I said. The only cost for obtaining digital content is a few clicks of a mouse. I dont mean that the seller thinks the value is 0, I mean that the consumer does. Add piracy to the mix (a few extra clicks) and everything digital can be free. I am not defending this state of affairs, just stating it. Why does everyone block ads? Why does everyone look for archive links to overcome paywalls? Because they feel that paying more than 0 is a rip-off
  - dredmorbius 4y ago
    1. confusing price and value. 2. misstating the necessary criteria / mechanism of ZMC. You're correct in that the marginal cost, and hence market price of information, trends to zero.
    - collaborative 4y ago
      I am neither an economist nor an english speaker. This is my uneducated view
      - dredmorbius 4y ago
        An opportunity presents itsself. https://xkcd.com/1053/ https://xkcd.com/1053/ https://en.wikipedia.org/wiki/Public_good_(economics) https://en.wikipedia.org/wiki/Public_good_(economics) https://en.wikipedia.org/wiki/Marginal_cost#Relationship_to_fixed_costs https://en.wikipedia.org/wiki/Marginal_cost#Relationship_to_...

dredmorbius 4y ago

The zero-marginal-cost dilemma results in a market price of 0. That does not mean a use value of 0. And with any level of fixed costs, there is a nonzero production cost. Market function in this case is highly inefficient as it results in underprovisioning and a deadweight consumer loss of value. Sometimes the marketis the wrong tool for the job. Finally: you're also misstating what the marginal cost dilemma is. Resources need not be infinite, but rather either non-excludable or with marginal cost below average cost. Both can occur with an otherwise finite good or service. And an infinite resource might face other limitations which result in a nonzero price. The Universe could well be infinite in dimensions. Even were this the case, such that space is unlimited, lack of access to that space would result in nonzero land prices on Earth for humans. (Paul Krugman actually wrote a paper on the economics of a space-colonising civlisation early in his career. I don't recall his specific argument or of it parallels my own here, but it might make interesting reading.)

collaborative 4y ago
I dont understand what the issue is with what I said. The only cost for obtaining digital content is a few clicks of a mouse. I dont mean that the seller thinks the value is 0, I mean that the consumer does. Add piracy to the mix (a few extra clicks) and everything digital can be free. I am not defending this state of affairs, just stating it. Why does everyone block ads? Why does everyone look for archive links to overcome paywalls? Because they feel that paying more than 0 is a rip-off
- dredmorbius 4y ago
  1. confusing price and value. 2. misstating the necessary criteria / mechanism of ZMC. You're correct in that the marginal cost, and hence market price of information, trends to zero.
  - collaborative 4y ago
    I am neither an economist nor an english speaker. This is my uneducated view
    - dredmorbius 4y ago
      An opportunity presents itsself. https://xkcd.com/1053/ https://xkcd.com/1053/ https://en.wikipedia.org/wiki/Public_good_(economics) https://en.wikipedia.org/wiki/Public_good_(economics) https://en.wikipedia.org/wiki/Marginal_cost#Relationship_to_fixed_costs https://en.wikipedia.org/wiki/Marginal_cost#Relationship_to_...