Arrow Information Paradox
- Arrow Information Paradox
The Arrow Information Paradox is a problem that companies face when managing intellectual property across their boundaries. This happens when they seek external technologies for their business or external markets for their own technologies.
The customer needs to know the technology and what it does in sufficient detail as to understand its capabilities and decide whether or not to buy it. Once one has this detailed knowledge however, the seller has in effect transferred the technology to the customer without any compensation.
References
*Chesbrough, Henry(2006),"Open business models: how to thrive in the new innovation landscape",Harvard Business School Press, ISBN 978-1-4221-0427-3
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