The Economy of understanding as an innovative and alternative concept of pricing of information

This paper is introducing the Theory of Attention and Economy of Understanding as an innovative and alternative approach of cost and pricing of information. After introducing the theory of Georg Franck [Franck, G. (1998), Ökonomie der Aufmerk¬samkeit (The Economy of Attention), Munich: Carl Hanser], the attempt of transformation to the information economy will be made. Classical concepts for cost of information will be compared with this innovative concept. This paper is based on several years of examination of theories and practices of price fixings and concepts in the information economy. Most prices are based on length of information, duration of online time, actuality etc., but most of these price concepts give little satisfaction to the consumer because they are irrational. Till today there exist no price concepts in information economy concidering the attention or the understanding of information. Therefore the theory of Georgy Franck will be an interesting attempt for new price models. For the final result the study started with getting more familiar with the character of information and the methods that can be used to measure the value of information.One of the key issues to take care of is the value of information for the customer and the question how this value can be charged. The price and cost models for (scientific) information and generally in business management were analysed. These classical models are compared with the approach of Georg Franck. The people stay in confrontation with a maximum number of information per day and recognise only the most attractive and readily comprehensible information. If information is very important it should be possible that information get a negative value, especially if information is difficult to understand, because there result fix costs for staff and other resources. Advertising agencies are measuring the attention drawn by a particular medium like TV. The private television as a leading mass medium finances itself by selling the service of catching attention. These are systems of channels supplying information in order to gather attention in return and determine the financial success. Normally it should be the goal of every scientific author to gather attention by the scientific community. Therefore every author should formulate his publication attractive to receive a maximum of attention and understanding because these two points will be rewarded directly with scientific success. But will the consumer (scientist) pay for understanding and attention? This work should give a new approach of information pricing. Till today no host or supplier of information uses this model for pricing. Indirectly Google uses the the theory of attention in its ranking (frequency of linking) and word advertising (most-searched words). The pursuit of attention and understanding could be lead to efficiency in scientific publication if database supplier and producer use this tool of pricing of information. I would like to show, that new models of pricing should be interesting for the information economy and that advertising as another kind of information and understanding use attention and understanding as the base of pricing for a long time.