3 ms·
I don't have much insight into what's profit-maximizing in this market, but rather than "public utility pricing" (though I can also see that analogy) I think of
by _delirium 13y ago
I don't have much insight into what's profit-maximizing in this market, but rather than "public utility pricing" (though I can also see that analogy) I think of it as more like classic small-business pricing, especially in markets where developing some kind of reputation for fairness is deemed important by the owner. I can't think of a good representative example, but it's so well established I'm pretty sure I've run across examples in 19th-century American novels of this sort of "fair price with a modest profit" ethos.
- cperciva 13y agodeveloping some kind of reputation for fairness is deemed important by the owner That's certainly part of it. Let's face it, a lot of people use Tarsnap because of my reputation; I'd like to have Tarsnap contribute to my reputation rather than merely taking advantage of it. I'm pretty sure I've run across examples in 19th-century American novels of this sort of "fair price with a modest profit" ethos. I guess I really am a bit anachronistic...
- wglb 13y agocperciva hopes, by strict attention to business, combined with moderate charges, to merit a fair share of patronage and support. (stolen from tom)