There is no clear ruling on how the item works. By examining the item we see that it is a wondrous item. So by examining other wondrous items we can have a better understanding of how this one works.
Now wondrous items tend to be body slot items, and a page of spell knowledge does not fit here, so lets move on to the slotless items which it should have more in common with.
By seeing what is on the list we see that there are both consumable and permanent effect items on the list. By reading some of the items Ive come to the conclusion that you must use common sense as its not clear. Lets take a fairly obvious example of universal solvent. Which must be consumed but doesnt actually state it...
This substance has the unique property of being able to dissolve sovereign glue, tanglefoot bags, and all other adhesives. Applying the solvent is a standard action.
So in the end, there is no solid answer as to how the item is suppose to function. However by reading the text of spell knowledge, I do not feel that it should be a consumable based on this line
If the bearer is a spontaneous spellcaster and has that spell on her class spell list, she may use her spell slots to cast that spell as if it were one of her spells known.
Since its clearly suppose to be carried with that word then it should not be consumed. So multiple casters could share this item. However it also leaves it open to being stolen.