I think there are a few reasons this works well (a simplification): 1. Ideally, you want everybody who wants to consume your product to do so at the highest pr

I think there are a few reasons this works well (a simplification): 1. Ideally, you want everybody who wants to consume your product to do so at the highest price they are willing to pay (as long as that is above the cost of production and some minimum profit margin). People willing to spend a lot of money are willing to also spend less, but people who are only willing to spend less money are not willing to spend more. Therefore you target the high-buyers first and the low-buyers second, until you reach zero. 2. Value loss over time means that there is some non-infinite window in which to sell your product in order to maximize profits. The trade-off is likely market (people wanting to purchase), selling price and exposure (how many people even know it exists) - x axis is time and y is profit. In relation to this story, the exposure was low and the market was lower as a result. Reducing price increased exposure and therefore allowed the visibility of the product to the market out there. Don't under value word-of-mouth! I think this is why the film and music industry need to calm down about piracy. The EU for example withheld a study because it showed that piracy didn't provably harm sales [1]. How many people have had their internet shut off, been fined or worse because of piracy - when there's no proven victim. In fact, if anecdotes like this story are anything to go by - it may even improve sales. My anecdote: After pirating the Matrix trilogy (in a time where I had no money), I ended up buying the films on DVD twice (each film individually and then the box set). I never would have purchased these films had I first not pirated them. Similarly, I found a PDF for a book on scrum before purchasing it - and then recommending my team do the same. Side note: I remember interviewing for a company that did this kind of analysis and automatically adjusted prices for online websites. I don't think those guys actually had any clue (it was all very young programmers and no mathematicians/machine learning people) - but in theory it's entirely possible. [1] https://arstechnica.com/gaming/2017/09/eu-study-finds-piracy-doesnt-hurt-game-sales-may-actually-help/ https://arstechnica.com/gaming/2017/09/eu-study-finds-piracy...