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But importantly, the bakery can't charge the poor people price for everyone or they'd bankrupt. I think many indy artists are like that, that's why they say th

But importantly, the bakery can't charge the poor people price for everyone or they'd bankrupt. I think many indy artists are like that, that's why they say they'd rather you pirate their games. They could have used more strict DRM instead, if they only cared about money.

cgriswald 7y ago
> They could have used more strict DRM instead, if they only cared about money. Maybe, maybe not. DRM costs money and imperfect DRM can cost future customers, so in the case of an indy developer, it might be a net loss.
nybble41 7y ago
> But importantly, the bakery can't charge the poor people price for everyone or they'd bankrupt. In this situation the bakery is basically running a charity funded by the extra money they're getting through price discrimination. That's separate from their role as a business. The minimum sustainable price in the absence of price discrimination would not be the "poor people price" or the price paid by the rich, but rather the cost of material, labor, and capital which lies somewhere in between. Price discrimination and the absence of arbitrage allow the bakery to charge rich customers more, but it's entirely their choice to use that extra income to provide goods at a loss to those of lesser means. They could instead just keep the extra revenue for themselves.