Information Goods and Income Distribution
By Arnold Kling
James Miller has an interesting thesis concerning information goods. Since most of the cost is up-front research and development, he argues that these goods will be priced attractively for mass consumption.
As easily copied informational goods become more important to the U.S. economy, the differences in consumption between the rich and middle class will continue to diminish.
For Discussion. Can you think of information goods that are luxuries? Is it really harder to sustain a market for luxury information goods than for luxury physical goods and services?