City Research Online

Abstract

The use of economic analysis is suggested for decisions relating to services provided by documentary information systems. Ragnar Frisch's Theory of Production model is used in the analysis. An information system is viewed as a production system, with input elements and the final product, the output, defined as the information received by the user, which could be measured in terms of volume. The research divides in two parts - a) The cost study and b) The economic evaluation. It is suggested that costs compiled by traditional accounting procedures have little value as a guide to management decisions. Average cost analysis, or unit costs, based only on the volume of output as the variable affecting costs is shown to be an over-simplified approach. Costs seem to be affected by several operational conditions found in information systems. An attempt is made to identify which variables affects cost behaviour. As criteria for decision making - cost-effectiveness and cost-benefit analysis - do not seem sufficient for the evaluation of documentary information systems. Cost-effectiveness analysis, a value for money calculation, it, only a method of making comparisons and cannot demonstrate that any given project is worthwhile. Cost benefit analysis bears an operational constraint in finding a way to reduce different kinds of costs and benefits in common monetary terms. An economic evaluation is then proposed and some indicators for measuring system's efficiency are discussed. Concepts like marginal cost, economies of scale, inflationary effects and capacity are reviewed through the analysis.

Publication Type:	Thesis (Doctoral)
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HG Finance Z Bibliography. Library Science. Information Resources > Z665 Library Science. Information Science
Departments:	School of Communication & Creativity > Media, Culture & Creative Industries > Library & Information Science School of Communication & Creativity > School of Communication & Creativity Doctoral Theses Doctoral Theses

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