2. Theoretical limits of information interactions in economic space

In virtual space of Internet technologies being the base environment for the performance of network economy, human interactions are exercised as follows:

1) via dissemination of information flows over space;

2) in the form of collection and processing of information; and

3) via direct information exchange between economy participants.

All these processes are implemented with the help of information and communications technologies being the technical means of interactions. Interaction carriers are information flows disseminating in the information environment of economic system. We will call the "information environment of economic system" as an "information space".

Let us consider how technical limitations on dissemination of information flows combined with the factor of gradual obsolescence of information will influence the structure of interactions of an individual agent with the rest of agents in economic system.

Information flows are disseminated over economic system with certain finite velocity. Upper limit of the latter depends on the current development level of ICT. Even if each given pair of agents can be connected with the fastest of existing information exchange channels, it is practically impossible to simultaneously ensure similar conditions for all the agents of economic system. Thus, from the viewpoint of each individual agent, there always will be groups of agents with whom there is an opportunity of fast information exchange as well as other groups with no such opportunity.

From theoretical point of view, the situation could be presented as follows:

1. Agents geographically distributed over the space of economic system have a certain network of information exchange channels. Information flows created by agents disseminated over the entire system via this network and gradually fade away. Development of information exchange channel topology can produce situations when individual agents have better conditions for interactions with remote agents then with immediate neighbors. Therefore, proximity or remoteness of agents in virtual information space, in a general case, can differ from the similar geographical parameters.

2. For the time being, we exclude from consideration the parameters of geographical distribution of agents in the system and the technique of transforming geographical distances into information ones. Let us limit our analysis to the boundaries of virtual space. We shall proceed from the notion that all the multitude of agents is distributed in a certain fashion over the virtual (information) space of economic system. The distance in information space is defined as follows: the farther are the agents from each other, the more time is required for an information flow sent by one of them to reach the other.

3. Select a certain individual agent as the center from which information flows are emanated. The distance from the center to the rest of the agents in information space could be characterized by the time interval required for reception of information flows by each economic system agent (within this interval information travels from the source agent to the recipient). Thus, we are able to obtain a set of values of information remoteness of system agents from the “center” selected; in conjunction with particular points in space those values make it possible to define its topology.

It should be noted that within an economic system there is also a continuous flow of stochastic changes of its state that, in the general case, cannot be predicted by the agents. In our case this results in the fact that information flows disseminating over the system, gradually lose their adequacy to the current state of the system and therefore decrease in value. Usual situation: information sent by the source agent cannot be altered on the way to the addressee. During the time of information travel, the system can undergo changes that lead to the loss of actuality by information content.

Thus, such parameter as the intensity of stochastic changes within an economic system under constant information dissemination velocity defines the maximum possible duration of information dissemination. Exceeding this duration means loss of topicality of the given information. We have to keep in mind that the full-fledged agent interaction should presuppose mutual information exchange (recipient forms and relays back to the source its reaction to the information flow received). Consequently, the time interval of the maximum possible duration should incorporate also the reception of feedback by the agent source.

Limits of information interactions between agents depend on: a)remoteness of recipient from a source (on Fig.2 - from the source at the right side to several recipients on the left one);
b)average velocity of information dissemination through the system space (on Fig. 2 - zones from A to C;
c)average velocity of changes of economic system state.
Let agent-source knows current state of agents-recipient (it's upper line connected all agents). He can forecast states of agents-recipient (forecasted states located on the information flow line). Agent-source starts information flow to agent-recipient (blue and light blue arrows). Radial arrows show where should be future state of agents-recipient while information flow is disseminating. The flow content based on a forecast of the state of agents-recipient that agent-source could make. But to the moment when agents-recipient will receive an information from agent-source unpredictable changes make uncertain the real state of agent-recipient. The probability to shot the real state is lesser then farther agent-recipient from agent-source.

Fig. 2. (see bigger image)

  • Agent-source – blue sphere on the right side;
  • Agent-recipients – green, yellow and red spheres to the left from the source-agent;
  • Information flow – blue, light blue arrows from the agent-source to the recipients;
  • Measure of changes of state of agent-recipient – arrows from top to bottom by appropriate color;
  • Remote zones of the space from the agent-source point – zone A is nearest and C is farthest.

Division of the system space on three zones A, B and C has following legend:

  • Agents-recipient located inside zone A have the best conditions to interact with agent-source. They are closed enough to the agent-source to receive and send back real time reactions on signals of information flow. Far from boundaries of zone A locate a zone B. Agents-recipients from here can receive actual picture from the agent-source, but they are too far for real time reactions on the signals. Any agent-recipient from zone C (located after zone B) receives only non-actual information flow.
  • In the next section we continue this analysis.


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