3 ms·
Price discovery is an outcome of demand-supply situation and information asymmetry. Optimum price x can be derived by optimizing function f(x*n) where x is the
by anuraj 13y ago
Price discovery is an outcome of demand-supply situation and information asymmetry. Optimum price x can be derived by optimizing function f(x*n) where x is the price and n is the number of users willing to pay that price. So the approaches are:
1) Experiment with a sample population to determine 'x'
2) Use heuristics about existing similar software to reach a price point
The point is many developers are just not looking at maximizing their earning potential.