[DandyDev]

Exactly this! Location-based pay is not so much about cost of living as it is about buying power. In the end, money is just a place holder for real value which comes in the form of goods and services. And the real value of the same amount of dollars wildly differs per location. So if you want to pay fairly and not discriminate, you have to try and make sure people can roughly buy the same things in their differing locations for the money you give them.