I think you're missing the OP's point. The marginal utility of a Starbucks coffee is indeed very small, but at least it is known. The marginal utility of your

I think you're missing the OP's point. The marginal utility of a Starbucks coffee is indeed very small, but at least it is known. The marginal utility of your $0.99 app is unknown and possibly even negative. Of course I agree with you on the issue of pricing, but I think that's orthogonal to this discussion.