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Differential pricing is a retail strategy that predates the Internet. If you want to be one of the first people to read a new book by an author you like, you h
by sethg 14y ago
Differential pricing is a retail strategy that predates the Internet. If you want to be one of the first people to read a new book by an author you like, you have to spend to get it in hardcover; if you don’t like the hardcover price, wait a year and then buy it in paperback. You can watch a new movie in the theaters, or wait to pick it up on DVD. Pay sticker price for whatever groceries you want, or make the effort to collect coupons and buy the things that are on sale. Etc., etc. It’s all artificial scarcity, in the sense that nothing prevented a publisher from putting out a book only in paperback from day one.
“Exclusive content” is the same idea: the only difference is that the discounted price is zero.
- figglesonrails 14y agoYep, and time and time again has shown people pay for sooner. I really think people who assume "scarcity" is the only factor in economic models aren't seeing the whole picture. Exclusivity of group membership (I have a t-shirt, jacket, etc. with this awesome logo I can advertise my social status/beliefs), being "first" in a social group, and just plain impatience or apathy contribute greatly. If everyone was purely rational, I'm pretty sure we'll all use refillable water bottles, personal water filters, and buy food in bulk. Assuming the motivations behind every actor in the economy are purely rational is utterly naive.