Requirements for an Efficient Value Pricing of Geoinformation.

Alenka Krek (2004): Requirements for an Efficient Value Pricing of Geoinformation. In: AGILE 2004, 7th Conference on Geographic Information Science. Heraklion, Crete University Press

Value pricing is pricing according to the value the buyer attaches to the characteristics of the product. It is market based pricing that is generally independent of the production cost. In order to be able to apply value pricing the producer has to identify the characteristics of geoinformation that have an economic value for the buyer. Such analysis can be done with metric conjoint analysis which is concerned with quantitative descriptions of the buyer?s preferences and his value trade-offs. Additional requirement for the implementation of the value pricing is product differentiation where the producer differentiates his products in such a way as to better satisfy the varieties of the buyer’s needs. The problem with value pricing is price dispersion. Price dispersion is a variation in prices for the same good and, consequently, can create perceptions of unfairness among buyers if they are able to share information about prices.

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