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"Everything is worth what its purchaser will pay for it." -Publilius Syrus It's textbook price discrimination[1]. If somebody's not willing to pay much for tex
by bonzoesc 14y ago
"Everything is worth what its purchaser will pay for it." -Publilius Syrus
It's textbook price discrimination[1]. If somebody's not willing to pay much for texting, they can pay nothing and ask that it be disabled. If somebody cares very little about it, they can pay 20¢ per message[2]. If they know they'll text lots or just want to pay a flat fee and not care, they can pay $20/month[2].
The 20¢ per message is because if you're a light texter, that's about the most you're willing to pay per message.
The cost of something only sets a bottom floor on a price; it's not immoral or unethical to maximize profit by setting a sale price with a large margin.
1: http://en.wikipedia.org/wiki/Price_discrimination http://en.wikipedia.org/wiki/Price_discrimination
2: http://www.wireless.att.com/cell-phone-service/cell-phone-plan-details/?q_sku=sku3830290&q_planCategory=cat1370011 http://www.wireless.att.com/cell-phone-service/cell-phone-pl...