The efficiency of a market depends on the amount and the nature of information about products and consumer tastes available to sellers and buyers. The information goods market,however,will not be such an efficient market because of the nature of information goods. Information goods are mostly experience goods, whose quality becomes known only after consumption. In many information-based sectors of the next economy,the purchase of a good will no longer be transparent.
This thesis suggests a formal economic model considering the quality uncertainty problem of information goods. The model suggests that illegal copies may play an important role as information channel to counteract the problem.
