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In many places landlords cannot suddenly jack up the price, but can only increase it in small amounts year by year. One could similarly imagine rent controls on
by Joeri 6y ago
In many places landlords cannot suddenly jack up the price, but can only increase it in small amounts year by year. One could similarly imagine rent controls on digital services, where sudden price hikes are simply not allowed, and terminating the rental agreement one-sided is similarly restricted. The practical downsides of that kind of legislation would probably end up quite similar to rent controls.
- jimkleiber 6y agoYes! I've found that I sometimes will keep a subscription, even if I'm not currently using it, because I've been locked in at the old price, and can feel really annoyed when they increase the price by a significant amount or percentage and force me to adopt it. About rent control, yup, it may have the ups and downs of real estate rent control :-) I'm also wondering, with physical real estate, there is a tangible limit to how many people can rent the space, whereas SaaS seems to make up arbitrary user limits. But maybe I'm wrong, and there is a limited number of users because each user has variable costs—in the housing analogy, utilities like water, space, wear & tear on the place, etc., and in the SaaS space, customer service, server space...I can't think of any more but maybe they're there...