science

Information Rules

Information Rules is a science topic covered in the lgStudy science library. This page brings together a partial reference excerpt, illustrations, worked examples, real-world applications and a short study plan, so you can understand Information Rules rather than just read about it. In short: Information Rules is a 1999 book by Carl Shapiro and Hal Varian applying traditional economic theories to modern information-based technologies. The book examines commercial strategies appropriate to companies that deal in information, given the high "first copy" and low "subsequent copy" costs of information commodities, such as music CDs or original texts.

Key takeaways

Information Rules belongs to science; place it in that map before memorising details.
Learn the definition first, then one example that makes the definition concrete.
Connect Information Rules to a quantity you can measure, compute or draw — that is where exam questions come from.
Reproduce the core statement of Information Rules from memory before moving on to harder problems.

Reference excerpt

Information Rules is a 1999 book by Carl Shapiro and Hal Varian applying traditional economic theories to modern information-based technologies. The book examines commercial strategies appropriate to companies that deal in information, given the high "first copy" and low "subsequent copy" costs of information commodities, such as music CDs or original texts.

Content The book examines competing standards, and how a company might influence widespread consumer acceptance of one over another, such as VHS versus Betamax, or HD DVD versus Blu-ray. The book mentions possible business strategies of such publishers as Encyclopædia Britannica who have to confront how to stay viable as technology changes the value and availability of information.

Worked examples

Example 1 — a first encounter with Information Rules

Start with the simplest possible case. Write down what Information Rules claims or describes in one sentence, then invent the smallest concrete situation in which that sentence is true. In science, the smallest case is usually a single object, a single equation or a single measurement. Check that every symbol or term in your sentence has a meaning in that case.

Example 2 — changing one variable

Take the situation from Example 1 and change exactly one quantity: double it, halve it, or set it to zero. Predict what should happen to Information Rules before you calculate. Comparing your prediction with the result is the fastest way to find out whether you understand the idea or only the words.

Example 3 — an exam-style question

Typical questions about Information Rules ask you to (a) state it precisely, (b) apply it to given data, and (c) explain a limitation. Practise writing all three answers in under five minutes; the third part is what separates a full-mark answer from an average one.

Applications of Information Rules

In research: Information Rules appears in science research whenever the underlying quantities have to be modelled precisely. Papers usually cite it as a starting assumption and then explore where it breaks down.
In technology and industry: Engineering practice reuses Information Rules in design rules, simulations and safety margins. Knowing the idea lets you read a specification sheet and understand why the numbers look the way they do.
In the classroom: Information Rules is common in secondary-school and first-year university syllabi. It links to neighbouring topics 1999 non-fiction books, Economics and finance book stubs, Economics of intellectual property, so understanding it makes those chapters shorter.
In everyday life: Look for Information Rules outside the textbook — in sport, cooking, traffic, electronics or the sky above you. An example you found yourself is remembered far longer than one you were given.

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How to study Information Rules in 20 minutes

Read the reference excerpt below once, without taking notes.
Close the page and write down what Information Rules means in your own words.
Compare your version with the excerpt and mark what you missed.
Work through the three examples above with pen and paper.
Explain Information Rules out loud to somebody else — or to Teacher Smith in the lgStudy chat.

Frequently asked questions

What is Information Rules in simple terms?

Why does Information Rules matter?

Because it connects several science ideas at once: it gives you a definition you can apply, a quantity you can calculate, and a way to check whether a result is plausible.

How should I study Information Rules?

Read the excerpt, restate it from memory, then work through the examples and applications listed on this page. The five-step study plan above takes about twenty minutes.

What does this page cover?

It gives you a compact reference excerpt plus original lgStudy explanations, examples, applications and study material on Information Rules.