ABSTRACT
Geoinformation is an intangible economic good determined by the high fixed cost of production and low marginal cost of reproduction. Its characteristics and the properties of the geoinformation market cause difficulties in applying neoclassical economic principles of pricing to geoinformation. We present cost-based pricing that is still used by many data providers and value-based pricing. Value-based pricing is pricing according to the value the buyer attaches to the characteristics of the product. It represents an alternative approach in pricing of geoinformation and is generally independent of the geoinformation production cost.
