Implications of social justice for the pricing of information goods

Abstract

During the past few years information has increasingly become a commodity. As a commodity the atypical cost structure of information goods in competitive markets result in the price of reproduction of information goods tending to zero implying that market failure is highly likely. Intellectual property rights prevent such market failure by protecting the ability of creators and/or distributors to charge for information goods and as such serve to stimulate and support the creation of information. But information also plays a vital role in enabling people‘s human rights in their everyday lives and it is therefore of paramount importance that such information be accessible. Pricing of information is one of the main factors determining accessibility and pricing strategies should aim to maximise access not just profit and thereby contribute to a socially just world. This paper examines the nature and pricing of information goods and suggests differential pricing of information goods based Rawls‘ principles of social justice.