I'm not sure why you're getting downvoted - you bring up valid points. This is similar to price discrimination. You can initially offer your product at $20 and

I'm not sure why you're getting downvoted - you bring up valid points. This is similar to price discrimination. You can initially offer your product at $20 and sell to whoever is willing to pay at that time. Then you lower it to $10 and sell to whoever is willing to pay at that time. And so forth. The major difference is that the customer is determining the price they are willing to pay rather than the manufacturer. If the customers act honestly and do pay exactly what they would pay if the manufacturer had set the prices, the manufacturer would actually be better of.