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Economics of Geographic Information

In general, it is difficult to understand the economic value of information. In classical economic theory, only land, labor, and physical goods have values. In this case, the participants in the market have complete knowledge, and knowledge is a free good with no value. This does not correspond to our daily experience, and economic theory has been extended. In the “new institutional economics,” information is valuable, as it contributes to improvements in economic processes. Information is a special economic good, as it can be given away and kept at the same time (possibly changing its value). Information products are costly to create for a first time but can be multiplied at very low cost without losing content. Nevertheless, understanding the economic importance of geographic information ...

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