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<!DOCTYPE html>
<html xmlns="http://www.w3.org/1999/xhtml" prefix="og: http://ogp.me/ns#" lang="en">
<head>
<meta charset="UTF-8" />
<meta name="viewport" content="width=device-width, height=device-height, initial-scale=1" />
<meta name="generator" content="Peter Fargas" />
<meta name="author" content="Peter Fargas" />
<meta name="robots" content="index" />
<meta name="keywords" content="grey literature, geo, geography, economy, statistics, per-country, country dependant pricing" />
<meta name="description" content="People living in different countries have very different chances, economical power and living standards differ. Statistical results for adjusting the prices accordingly." />
<meta name="referrer" content="always">
<meta property="og:title" content="Whitepaper: Geo-Equalization of Prices" />
<meta property="og:type" content="website" />
<meta property="og:url" content="https://informatik-handwerk.de/greyLiterature/whitepaper/geoEqualizationOfPrices/index.html" />
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<title>Whitepaper: Geo-Equalization of Prices</title>
<link rel="stylesheet" type="text/css" href=".index.files/micro.css">
<link rel="stylesheet" type="text/css" href=".index.files/greyLiterature.css">
<link rel="stylesheet" type="text/css" href=".index.files/style.css">
<style type="text/css">
</style>
<script type="text/javascript" src="rawData.js"></script>
<script type="text/javascript" src="rawDataNormalize.js"></script>
<script type="text/javascript" src=".index.files/jquery-1.11.1.min.js"></script>
<script type="text/javascript" src=".index.files/presentation.js"></script>
</head>
<body>
<!--
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<div id="creaAuthor" class="flowLeft writeItalic"><a href="https://informatik-handwerk.de/en/">
Peter Fargas
<br>
Independent Research & Prototypisation
<br>
https://informatik-handwerk.de
<br />
Leipzig, Germany
</a></div>
<div class="flowRight writeItalic">
Release date: March 2017
<br />
Last update: May 2017
<div class="verticalSpace"></div>
<span class="notAuthoritative"><a href="https://informatik-handwerk.de/greyLiterature/whitepaper/geoEqualizationOfPrices/index.html">Link to authoritative version</a></span>
</div>
<div class="flowClear"></div>
<h1>Geo-Equalization of Prices</h1>
<div id="content">
<div>
<div>
<p class="writeItalic">
People living in different countries have very different chances, economical power and living standards differ. To honour differencies of my customers, I resolve <span class="alignPre">Geo-Ip</span> and adjust prices accordingly.
</p>
<p>
I combined statistical data in 2015:
</p><ul><li>
<span class="writeBold">local purchasing power</span>:
<a href="https://www.numbeo.com/cost-of-living/rankings_by_country.jsp">Numbeo</a>,
<a href="http://www.nationmaster.com/country-info/stats/Cost-of-living/Local-purchasing-power">Nationmaster</a>
</li><li>
<span class="writeBold">economic freedom</span>:
<a href="https://en.wikipedia.org/wiki/List_of_countries_by_economic_freedom">Wikipedia</a>
</li><li>
<span class="writeBold">inequality adjusted human development index</span>:
<a href="https://en.wikipedia.org/wiki/List_of_countries_by_inequality-adjusted_HDI">Wikipedia</a>
</li><li>
The <span class="alignPre">Geo-Ip</span> resolving is provided by <a href="https://www.maxmind.com/">MaxMind</a>.
</li></ul>
<p></p>
<p class="writeItalic">
In such way, people all around the world get a comparable chance for using the tools and information they like.
</p>
</div>
</div>
<div>
<h2>Methodology</h2>
<div>
<p>
I normalize each of the four metrics, average them (there are two "local purchasing power" data-sets) and shape the curve:
</p><p>
<code>0.2* Math.exp(3.4* average)</code>
</p><p>
Poor countries gets a multiplier of 0.5 with Afghanistan at 0.372, well-doing ones around 3.5 with maximum of 5.199 in Switzerland.
</p>
</div>
</div>
<div>
<h2>Download</h2>
<div>
<p>
Here are the data I extracted in 2015 from various sources and aggregated into one multiplication factor to normalize prices. I estimated where data were missing – such spots are kept visible in raw data sources.
</p><p>
<span class="isAuthoritative"><a href="geoEqualizationOfPrices.zip">Download: raw data(json-like) & source-code(js/php)</a></span>
<br />
CSV export: is available for copy-paste at the bottom.
</p>
</div>
</div>
<div>
<h2>Programatical API</h2>
<div>
<p>
Both PHP and JavaScript share the same API - you provide a two-character <a href="http://en.wikipedia.org/wiki/ISO_3166-1">ISO 3166-1</a> country code and the price to <code class="writeBold">adapt()</code>. Or <code class="writeBold">readapt()</code>, in which case you supply two country codes - price origin and price destination.
</p><p>
Me myself am using services from MaxMind to obtain GeoIp from my customers. Their API is simple and they provide both, online resolver and databases to download. I use their free database as fallback in case online-resolver fails.
</p><p>
If you want to keep it all client-side, free database queries are available from <a href="https://freegeoip.net/">freegeoip.net</a> or <a href="https://geoip.nekudo.com/">geoip.nekudo.com</a>. I really like embedding on client side, because it respects privacy settings of your visitors. Just place the "no information" (estimated Internet average) value maybe a bit higher than I did.
</p>
</div>
</div>
<div>
<h2>Visual Data</h2>
<div>
<p>
Simpler than scanning or reading the table, you might prefer to use the integrated search function of browsers (<code>ctrl+F</code>).
</p>
<div id="options">
<p>
<span class="writeBold">Highlight: </span>
<br />
<input type="checkbox" class="highlight _normalized_nationmaster_localPurchasingPower">local purchasing power (nationmaster)</button>
<br />
<input type="checkbox" class="highlight _normalized_numbeo_localPurchasingPower">local purchasing power (numbeo)</button>
<br />
<input type="checkbox" class="highlight _normalized_wikipedia_economicFreedom">economic freedom (wikipedia)</button>
<br />
<input type="checkbox" class="highlight _normalized_wikipedia_humanDevelopmentIndex">human development index (wikipedia)</button>
</p>
<p>
<span class="writeBold">Sort by: </span>
<select class="sort">
<option value="_lexicographical_name">alphabetically</option>
<option value="_lexicographical_continent">by continent</option>
<option value="_aggregated_exponential">» unified geo-eq index «</option>
<option value="_normalized_nationmaster_localPurchasingPower">local purchasing power (nationmaster)</option>
<option value="_normalized_numbeo_localPurchasingPower">local purchasing power (numbeo)</option>
<option value="_normalized_wikipedia_economicFreedom">economic freedom (wikipedia)</option>
<option value="_normalized_wikipedia_humanDevelopmentIndex">human development index (wikipedia)</option>
</select>
</p>
</div>
<div id="mainFrame"></div>
</div>
</div>
<div>
<h2>CSV Data</h2>
<div>
<p>
<textarea id="csv"></textarea>
</p>
</div>
</div>
</div>
<script>
var bodyClass = document.body.className.replace('authoritative', '').trim();
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|| location.host == 'informatikhandwerk.de'
) {
bodyClass += " authoritative";
}
document.body.className = bodyClass;
</script>
<script>jQuery(document).ready(function(){
var toc = jQuery('#toc');
var tocItems = jQuery('.toc');
if (tocItems.length) {
tocItems
.detach()
.appendTo(toc)
;
toc.show();
} else {
toc.remove();
}
});</script>
</body></html>