The origins, definition and research area of information economics are outlined in brief. For the better understanding and discussion of information economics, some important concept that require examination, such as information economy, resources, uncertainty and information value are reviewed in detail. Furthermore, a brief history of model and issues surrounding models are examined. In particular, some applications of models related to social sciences have been investigated since these models hold tremendous potential as diagnostic and test tools in the practical and theoretical work of library and information science.