Economics still works fine. The funny thing, though, is that information doesn't behave like a typical good; it's only got marginal cost to duplicate, and is usually too cheap to meter, and every purchase adds a new seller to the market. Thus, it's kind of hard to even justify applying the economic question to information. Indeed, our societies are so drenched in information that we put price tags on tooling which can reduce, filter, aggregate, summarize, and otherwise lower the total number of bits of information within our control.
Any pragmatic and ethical intellectual property law regime must account for the practical truth that artists and scientists can only receive a full education by participating in an underground copyright-infringement movement which consists of private libraries, ad-hoc study sessions, thumb drives full of art and philosophy, and most recently Bittorrent and Sci-Hub. Our current law regime is completely out of touch with this reality, and fixing it will require drastically shortening the length of copyright, ending works-for-hire, and taking other big actions to destroy the media cartels.