Analytics of Information and Empirics of the Information Economy

The paper reviews some of the salient analytical contributions of information microeconomics or market uncertainty. It contrasts the prolific growth in the theory of micro information economics with relative neglect of empirical macro information economics or technological change. The explosion of transborder data flows and the collapse of natural monopolies in telecommunications has led to the emergence of economies in the grip of an information technology revolution. This paper presents an algorithm to measure the structure and size of the information economy in a cost-effective manner. The paper concludes that the generation of data for the analysis of the emergent information economy will facilitate the formulation of appropriate strategies to foster the development information economy.