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If you make more money it's hardly BS. There are supply and demand graphs and you can reasonably calculate how many customers you lose/gain from a price increas
by mdgrech23 3y ago
If you make more money it's hardly BS. There are supply and demand graphs and you can reasonably calculate how many customers you lose/gain from a price increase/decrease.
- jeffalyanak 3y agoIt can be rational and still be BS.
- warkdarrior 3y agoIt's only BS because you have to pay more.
- jeffalyanak 3y agoYes, exactly. It's only BS because you have to pay more, I don't think they made any other changes.
- 9991 3y agoreddit's users are creating the content for the other users, so a drop in users means less or worse content. Doubt you could model easily with a demand chart.
- brookst 3y agoThose graphs rely on knowing the price elasticity of demand, which is easy to get for commodities like wheat and next to impossible to get for differentiated products, at least without testing various prices on statistically identical cohorts, which is technically difficult and a PR nightmare.
- eru 3y agoThe short run elasticity might also be very different from the longer run elasticity. Eg consumer put up with the increased price for a while, but will switch away over time.
- brookst 3y agoIndeed, and then second order effects where elasticity might change as the platform gains or loses users.