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GEOGRAPHIC INFORMATION
Value, Pricing, Production, and Consumption
` 2008 by Taylor & Francis Group, LLC
GEOGRAPHIC INFORMATION
Value, Pricing, Production, and Consumption
Roger A. Longhorn Michael Blakemore
Boca Raton London New York
CRC Press is an imprint of the
Taylor & Francis Group, an informa business
` 2008 by Taylor & Francis Group, LLC
CRC Press
Taylor & Francis Group
6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487‑2742
© 2008 by Taylor & Francis Group, LLC
CRC Press is an imprint of Taylor & Francis Group, an Informa business
No claim to original U.S. Government works
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International Standard Book Number‑13: 978‑0‑8493‑3414‑6 (Hardcover)
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Library of Congress Cataloging‑in‑Publication Data
Longhorn, Roger A.
Geographic information : value, pricing, production, and consumption / Roger A. Longhorn and Michael Blakemore.
p. cm.
Includes bibliographical references and index. ISBN 978‑0‑8493‑3414‑6 (alk. paper)
1. Geographical information systems‑‑Economic aspects. I. Blakemore, M. J. II. Title.
G70.212.L656 2008
910.285‑‑dc22 2007025544
Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com
and the CRC Press Web site at http://www.crcpress.com
` 2008 by Taylor & Francis Group, LLC
Contents
Preface......................................................................................................................ix Acknowledgments..............................................................................................xiii About.the.Authors................................................................................................xv
Chapter.1. Introduction.......................................................................................1
1.1 What is geographic information?.........................................................2 1.2 Is geographic information unique?......................................................7 1.3 Valuing information...............................................................................9 1.4 The debate on charging for public sector geographic
information ...........................................................................................11 1.5 Overview of the contents.....................................................................15 References.......................................................................................................20
Chapter.2. Determining.the.value.of.geographic.information.................23
2.1 Introduction...........................................................................................23 2.1.1 Information value is in the eye of the beholder....................24 2.1.2 What type of value to measure? .............................................25
2.2 Valuing Geographic Information .......................................................29 2.2.1 Value changes with time, purpose, and use .........................30 2.2.2 The relationship between cost and value..............................31 2.2.3 Value determined by class of ownership, public vs.
private.........................................................................................31 2.2.4 Summarizing issues in the GI value debate..........................32
2.3 Value theory...........................................................................................34 2.4 The information market and the information economy.................35 2.4.1 Information as an intangible asset.........................................36 2.4.2 The role of technology and infrastructure............................37
2.5 The value chain.....................................................................................38 2.5.1 The information value chain...................................................39 2.5.2 Which information value chain for GI?.................................40
2.6 Different components of value for GI ................................................42 2.6.1 Value of the location attribute in GI.......................................42
` 2008 by Taylor & Francis Group, LLC
vi Contents
2.6.2 Time dependency value of GI .................................................43 2.6.3 Value determined by cost savings..........................................44 2.6.4 Adding value via information management
techniques and tools.................................................................45 2.6.5 Value due to legal or other mandatory use
requirements..............................................................................45 2.6.6 Value due to network effects...................................................46 2.6.7 Value due to quality of an information resource .................46
2.7 Value of geographic information to economies and society...........48 2.7.1 Commercial value of GI...........................................................48 2.7.2 Economic value of GI................................................................48 2.7.3 Socioeconomic value of GI.......................................................49 2.7.4 Valuing the economic contribution of public sector GI.......50 2.7.5 Value of GI as underpinning for other information
and services................................................................................53 2.7.6 Intangible benefits: value unquantifiable in monetary
terms ...........................................................................................53 2.8 The changing value of geographic information...............................54
2.8.1 Increasing the value of GI........................................................54 2.8.2 Restricting the value of GI.......................................................55 2.8.3 Value of GIS and other GI visualization systems.................56
2.9 Conclusions............................................................................................58 References.......................................................................................................58
Chapter.3. The.business.of.GI:.No.such.thing.as.a.free.lunch..................63
3.1 The turbulent interplay of price, cost, and value..............................63 3.2 Access, demand, resource, and information supply........................67 3.3 Is there such a thing as an informational free lunch: the
commons?..............................................................................................70 3.4 Resourcing the interfaces between supply, demand, and
update ....................................................................................................76 3.5 Can a free lunch be sustained? ...........................................................78 3.6 Development, exploitation, and public investment .........................85 References.......................................................................................................88
Chapter.4. Pricing.information:.The.interaction.of.mechanism.and. policy...............................................................................................95
4.1 Pricing theories......................................................................................95 4.1.1 First-degree price discrimination...........................................95 4.1.2 Second-degree price discrimination......................................96 4.1.3 Third-degree price discrimination.........................................97
4.2 Extending pricing theory.....................................................................98 4.2.1 Zero-degree price discrimination ..........................................99
` 2008 by Taylor & Francis Group, LLC
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