For a simple introduction to the economics of price discrimination from a tech startup's point of view, Joel on Software has a great article [1] which, although

For a simple introduction to the economics of price discrimination from a tech startup's point of view, Joel on Software has a great article [1] which, although it's from 2004, is still quite relevant. That article notes: "[Charging different people different prices for the same product] pisses the heck off of people. People want to feel they're paying a fair price. They don't want to think they're paying extra...it seems like customers would rather pay $100 when everyone else is paying $100 than pay $79 if they know there's someone out there who got it for $78." [1] http://www.joelonsoftware.com/articles/CamelsandRubberDuckies.html http://www.joelonsoftware.com/articles/CamelsandRubberDuckie...