ERIC Number: ED135382
Record Type: RIE
Publication Date: 1975-Apr
Reference Count: 0
Cost Recovery in Pricing and Capacity Decisions for Automated Information Systems. Final Report.
Dei Rossi, James A.
This paper examines the cost-benefit implications of alternative pricing and capacity investment decisions for automated scientific and technical information retrieval systems. Two typical systems are examined and numerical examples presented. In the first system, search requests are entered on-site. The show how setting price to maximize net social benefit precludes total cost recovery and implies subsidization. In the second hypothetical system, search requests are entered from remote access terminals. Allowance is made for random arrival rates, and distinction is made between system charges to users and other user incurred costs. With these refinements, the numerical examples show how, for certain ranges of output, total cost recovery is consistent with the maximization of net social benefit. The paper then examines the "public good" attributes of scientific and technical information retrieval systems and concludes that such systems can be viewed as "semi-public goods," since the information stored has the characteristics of a public good while access to this information has the characteristic of a private good. Based on the public good considerations and the numerical examples, the paper concludes that subsidization for the fixed costs is warranted to the extent that all reasonable alternatives which maximize net social benefit preclude total cost recovery. (Author)
Descriptors: Cost Effectiveness, Costs, Decision Making, Fees, Information Retrieval, Information Systems, Online Systems, Search Strategies, Social Attitudes, Social Influences, Socioeconomic Influences
Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402 (SD Catalog No. C13, 46:864, $l.20)
Publication Type: Reports - Research
Education Level: N/A
Sponsor: National Science Foundation, Washington, DC. Div. of Science Information.
Authoring Institution: National Bureau of Standards (DOC), Washington, DC. Inst. for Computer Sciences and Technology.