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Unpublished Paper
Pricing principles for geographic data
FDF Management reports to OGDC, Victorian Treasurey, Australia (1996)
  • Marcus R Wigan
  • Nigel R Rockliffe, Economic Outcomes
  • Trevor Fuller, FDF Management
  • Andrew Edgar, FDF Management
Abstract
FDF Management were briefed to identify appropriate pricing principles for the spa-tial data of the Office of Geographic Data Coordination. This report reviews the current status of the OGDC’s spatial data, and the perceptions of current stakeholders in the Victorian market for spatial data. The OGDC’s three major types of data will soon reach a stage where broader marketing and promotion are appropriate.Clear pricing principles are needed to clarify the pricing policies for their expanding demand.  It is in the nature of spatial data that a variety of marketable products can be constructed at little extra cost from the same basic data. International experience of pricing principles for spatial data is reviewed, and examples from other countries and administrations are summarised.Clear pricing principles are needed to clarify the pricing policies for their expanding demand.  It is in the nature of spatial data that a variety of marketable products can be constructed at little extra cost from the same basic data. International experience of pricing principles for spatial data is reviewed, and examples from other countries and administrations are summarised. (1) that widest distribution of the product gives most benefit to society, and (2) that the producer of the information must achieve an appropriate financial return. FDF Management have constructed two computerised models for determining Ramsey prices. One model handles a single data product, and assists in understanding the characteristics of Ramsey pricing. The other model addresses the pricing of products derived from a base data set (the State Digital Road Network). FDF Management recommends that the Ramsey pricing method be adopted as the basic pricing principle. Some of the concepts in this report may be new to the parties who are are affected by them and whose cooperation is needed if the report’s recommendations are to be imple-mented. We therefore recommend that the principles be discussed at a workshop conducted by a body such as Monash University’s Centre for GIS. Further steps to ensure effective policy development are:
- to run a public workshop for stakeholders on pricing principles, pricing strategy and market development;

- to consider legal protection through endorsement as ‘current acceptable state of practice’ by an expert client group;

- to review licence and royalty structures;  and;

- to develop marketing strategy by determining the product variants attractive to different market segments.

Keywords
  • Pricing Policy
Publication Date
Winter June 1, 1996
Comments
Ground breaking work that began the slow move over the next twenty years to Data.Gov and Open Data from Government, Established the principle that for reliable data maintenance rather than historical or monopoly pricing bases should be used. Accepted by Treasury at the time as the appropriate principles to move towards, the methods proved to be robust in their hands over subsequent years.The Models used and the presentations associated with it are also posted here
Citation Information
Wigan, M. R., Rockliffe, N.R., Fuller, T., and Edgar, A. (1996). Pricing principles for geographic data. Melbourne, FDF Management for the Victorian Office of Geographic Data Cooordination.