> Product segmentation for software is also a different issue, because all the scarcity is artificial to begin with, with no natural underlying supply curves be

> Product segmentation for software is also a different issue, because all the scarcity is artificial to begin with, with no natural underlying supply curves because there's no marginal cost to making another copy. What you're saying is that due to some irrelevant production related factor, it's totally fine for a software company to price their product based on what the market is willing to pay, but as soon as a piece of hardware is involved, that principle doesn't apply anymore. What about selling software that comes with a hardware copyright protection dongle? Under which category does that fall? The marginal cost of producing that dongle is not zero after all.