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But yet we price water and gasoline per gallon, natural gas per cubic foot, and electricity per kilowatt hour. * in the US, others feel free to convert to your
by adestefan 15y ago
But yet we price water and gasoline per gallon, natural gas per cubic foot, and electricity per kilowatt hour.
* in the US, others feel free to convert to your local units.
- fr0sty 15y agoNot sure about you, but my gas bill is $/therm(~100 cu ft) and my water bill is $/100gal. Pricing data in MB (or KB!) is like billing for water by the cup (or Teaspoon!).
- malandrew 15y agoGallons makes sense. I could wrap my head around the 15 gallons I used to put in my car's tank. What I wouldn't want to wrap my head around is thinking about putting ~56,781 cubic centimeters of gas in my tank. If you require someone to perform multiplication beyond 10^1 scale to estimate costs, it becomes easier for telcos to overcharge users. You and I probably have no issues with multiplication in our head on the order of 10^2 up to 10^6, but for most users, that scale is mentally taxing. Compare: 0.02 cents per sms message $20 per 1000 sms messages Plus, prices are "stickier" at 0.02/message than 20.00/1000 messages, since it's easier for two telcos to start discounting their price relative to one another with the latter, like $15/1000 vs $20/1000. The equivalent to such a discount under the per message pricing schema is to charge fractions of a cent. i.e. 0.015/message vs. 0.020/message. The only place in society where we really see fractional cent pricing in daily life is with gallons of gas, and even there the burden for the end-user is high enough that the gas stations all get away with leaving that fractional amount at nine tenths of a penny almost all the time.