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You cannot have your cake and eat it too. All pricing introduces inefficiency without perfect price discrimination. If you charge a fixed rate for a product or
by Danieru 14y ago
You cannot have your cake and eat it too.
All pricing introduces inefficiency without perfect price discrimination. If you charge a fixed rate for a product or service you exclude the users where the wealth created is less than the rate charged, aka the marginal consumer. You can improve this by charge lower prices for the marginal buyers. You can then do a similar thing for very high value consumers. This is why Microsoft sells so many versions of Windows.
In the real world price discrimination is very crude. Consider that Microsoft only has ~6 versions of windows, that is only 6 discrete steps to covers the several magnitudes of value created for users.
The reality is there is no algorithmic way to determine the marginal apps. Thus if Apple wants to charge 30% for all apps except those for which this is excessive they are best off doing things on a case-by-case basis.