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It's really easy to "honestly" assess willingness to pay, actually. If you paid for it, you were willing to pay at least the asked amount. In a "pay what you w
by dangerlibrary 13y ago
It's really easy to "honestly" assess willingness to pay, actually.
If you paid for it, you were willing to pay at least the asked amount. In a "pay what you want" scheme, your willingness to pay is something between infinity and what you wind up paying. If you don't buy a thing, your willingness to pay is something below the price being asked.
There's no magic. It's an immediately available revealed-preference system - you either pay or you don't. I won't disagree that the availability of a free, well-functioning, DRM-free, easily available alternative reduces people's willingness to pay for locked-in, degraded, or even available-but-overpriced alternatives. That said, we live in a world where the piracy alternative exists, whether people like it or not.
Adjust your business model accordingly. Valve is making a killing selling software via Steam.
- ptmx 13y agoSure, easy piracy is a part of reality and businesses should, as a pragmatic matter, adjust their business models -- that's neither here nor there. When I talk about being able to honestly assess willingness to pay, I'm talking about the pirate who claims that they wouldn't buy a good anyway so they might as well pirate it. It might be true, but all we can really say from the outside is that they value the good at least $0 worth, so their willingness to pay is somewhere between 0 and infinity. You can't put an upper bound on their willingness to pay just because they didn't buy the good when they got the good for free. I don't particularly care if people pirate, but I find that pirates tend to do a fair bit of mental gymnastics trying to justify why piracy is ethical; I think the "I wouldn't pay for it anyway" argument falls under that umbrella.