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Is this why products often enter market at a high price, which is then lowered gradually?
by Zash 15y ago
Is this why products often enter market at a high price, which is then lowered gradually?
- xenophanes 15y agoNo, that's for price discrimination.
- FaceKicker 15y agoIsn't price discrimination what this developer should want though (assuming he's interested in maximizing revenue)? I.e., getting people who are willing to pay more to do so, while still getting revenue from people who aren't willing to pay as much? I thought that was Zash's point anyway.
- deleted 15y ago[deleted]
- jessriedel 15y agoTo clarify xenophanes comment: steadily lowering the price will provide a degree of price discrimination which takes advantage of any demand curve which decreases with price. The OP is talking about a very special case where demand is proportional to 1/price.