Finding old value: Nonlinear pricing
Finding old value: Nonlinear pricing
- single provider, content cost = 100
- Person A will pay up to $10/ea. for 5 articles
- Person B will pay up to $6/ea. for 10 articles
- uniform price:
- p = 6, revenue = 90, no investment in creation
- nonlinear pricing: $10/article for first 5 articles, $2/article for additional
- revenue = 110, creation costs covered