[epsi-coord] Recently published study: DOES MARGINAL COST PRICING OF PUBLIC SECTOR INFORMATION SPUR FIRM GROWTH?
antti.poikola at gmail.com
Mon Oct 10 05:52:28 BST 2011
In case if you haven't noticed -> a recently published study from
Finland (study compares 15 countries).//I haven't read it yet. As far as
I know the study was ordered by one of the governmental working groups,
whichs is trying to reach consensus regarding the pricing issues.
*DOES MARGINAL COST PRICING OF PUBLIC SECTOR INFORMATION SPUR FIRM
GROWTH? * *28.09.2011*
Keywords: public sector information, pricing, firm growth, technology
Asiasanat: julkinen tieto, hinnoittelu, yritysten kasvu,
JEL: L25, L84, O38
Abstract: The firm-level data concerning re-users of geographical
information (GI) active in architectural and engineering activities and
related technical consultancy sector from 15 countries during the year
2000-2007 suggests that the pricing of public sector GI strongly relates
to the firms' sales growth. Firms functioning in the countries in which
public sector agencies provide fundamental geographical information
either freely or at maximum marginal costs have grown, on average,
aboutr 15 percent more per annum than the firms in the countries in
which public sector GI is priced according to the cost-recovery
principle. The difference-in-difference estimations further show that
positive growth impact materializes already one year after switching to
the marginal cost pricing scheme but a stronger boost to the firm growth
takes place with a two year lag. Interestingly, marginal cost pricing
has not generated notable growth among the large firms; it has been SMEs
benefiting most from cheaper geographical information. It seems credible
that switching to marginal cost pricing of public sector information
(PSI) substantially lowers SMEs' barriers to enter new market areas in
the provision of GI-based products and services.
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