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  • 1.  Information economics 101: communication value vs. bandwidth cost

    Posted 01-13-2002 07:37
    Dear Romie,

    The recent post titled "Back in the Temple of Uruk" was a playful
    request for courtesy in reposting the content of past posts. The
    style was playful. The request was serious. Carelessly repeated
    headers, footers, forwarding arrows, and nested passages of clutter
    make clumsy notes and cluttered lists.

    Romie Littrell wrote, "My bandwidth is cheaper than my time," adding,
    "Perhaps some of us haven't set our browsers to display the new
    message above the old, though I haven't seen this on this list."

    This response overlooks social, economic, and technical issues.

    The social issues involve communication tone and style.

    A thoughtful person takes the time to write well. Good writing
    involves style and format, habits of mind and the social environment
    one creates by writing. The tone and style of our posting creates the
    contextual community of our discussion group.

    The second issue involves the economic value of time.

    Measuring the cost of one writer's time against the cost of bandwidth
    is irrelevant. The meaningful measure balances an author's time
    against the aggregate time of other list subscribers.

    The major cost of a discussion list message is not measured in
    writing time. It is measured in reading and handling time multiplied
    by the number of readers. To determine cost, time must be multiplied
    by the value of reader attention.

    As of this morning, Mg-Ed-Dv has 1,017 subscribers. It takes a few
    seconds to determine that a reposted note is irrelevant, followed by
    a decision to trash or scroll by. Let us give these five seconds. It
    is less time for some, more for others. Those five seconds add up to
    one hour and fifteen minutes invested by the professors, executives,
    and consultants who subscribe. This time is more expensive than
    bandwidth consumed.

    The third fact is technical. Many of us subscribe in digest format.
    Those of us who subscribe in digest must scroll by old messages to
    get on to the next new message.

    The fourth fact is also technical. Bandwidth consumption is modest in
    its effect on any one individual, but massive in total. The bandwidth
    required for transmitting needless information in any one post is
    modest. Multiplied by thousands of daily transactions, however, this
    bandwidth adds up. No one message seems to make a measurable
    difference. However, these differences do make a difference in their
    aggregate effect. If you run a content analysis of a list like this
    and measure repeated messages against processing time, you would be
    able to measure exactly how much money these repeated messages cost
    the host of Mg-Ed-Dv.

    Instead, however, let us consider the value - or cost -- of an
    individual post to readers.

    I use three measures for the value of a post. Two are quantitative.
    One is qualitative. The quantitative measure is the ratio between
    signal and noise.

    The first quantitative measure is a form of content analysis. The
    counting functions of a word processing program allow us to analyze a
    post.

    Each unit of new, purpose-written content counts as signal. Reading
    the post converts signal into information. Once converted by the
    reader, it has no further use. The second time the post appears, it
    is noise. Each unit of repeated prior content is noise. The ratio of
    new content to repeated content is the signal-to-noise ratio. In any
    good communication, signal should be greater than noise.

    The second quantitative measure involves information economics.

    A repeated prior post contains no new information. Information
    economics therefore makes it is easy to quantify the cost of a bad
    post.

    The second time the post appears, it is noise. Since there is no
    signal left, a repeated post creates no value. Nevertheless, it
    requires processing time. Information economics suggests that this
    processing time is the cost of a repeated post.

    Since there is no value creation associated with the cost of a
    repeated post, this processing time measures destroyed value.

    The third measure is qualitative. A thoughtful, well-constructed post
    creates value for the 1,017 subscribers of Mg-Ed-Dv.

    While it is hard to quantify the value of a good post, it creates
    valuable information. This, in turn, creates some form of economic
    value. While this economic value is difficult to measure, it is fair
    to assume that the value created by a good post outweighs the cost of
    information processing.

    The value of a carefully edited, well-constructed note is greater
    than the simple cost of the bandwidth.

    Best regards,

    Ken

    --

    Ken Friedman, Ph.D.
    Associate Professor of Leadership and Strategic Design
    Department of Technology and Knowledge Management
    Norwegian School of Management

    Visiting Professor
    Advanced Research Institute
    School of Art and Design
    Staffordshire University


  • 2.  Information economics 101: communication value vs. bandwidth cost

    Posted 01-13-2002 07:57
    From: CSEND [mailto:saneryiu@csend.org]

    Is it possible to applaud cybernetically?

    Thanks, Ken.

    Lichia Saner-Yiu

    -----------------

    Ken Friedman wrote:

    The value of a carefully edited, well-constructed note is greater than
    the simple cost of the bandwidth.