Comments on: Price = Marginal Cost http://yumio.net/blog/2007/07/12/price-marginal-cost/ Blog of an economist who ended up working in web Mon, 24 May 2010 15:10:15 -0700 hourly 1 http://wordpress.org/?v=3.0.4 By: Francis http://yumio.net/blog/2007/07/12/price-marginal-cost/comment-page-1/#comment-19411 Francis Thu, 06 Nov 2008 05:52:23 +0000 http://yumio.net/blog/2007/07/12/price-marginal-cost/#comment-19411 1. Subscribe. 1. Subscribe.

]]> By: Administrator http://yumio.net/blog/2007/07/12/price-marginal-cost/comment-page-1/#comment-2769 Administrator Tue, 17 Jul 2007 19:09:48 +0000 http://yumio.net/blog/2007/07/12/price-marginal-cost/#comment-2769 Yes - you're right. Its not any different for most software, except the icons/gift business has its own unique dynamics like - artificially created scarcity (limited edition icons for example) that drives up prices, and there aren't a lot of support costs to icons (vs. enterprise software). Yes – you’re right. Its not any different for most software, except the icons/gift business has its own unique dynamics like – artificially created scarcity (limited edition icons for example) that drives up prices, and there aren’t a lot of support costs to icons (vs. enterprise software).

]]> By: Dan Isaacs http://yumio.net/blog/2007/07/12/price-marginal-cost/comment-page-1/#comment-2747 Dan Isaacs Mon, 16 Jul 2007 12:03:25 +0000 http://yumio.net/blog/2007/07/12/price-marginal-cost/#comment-2747 Um, does any software not have practically the same profit margins? I mean, once it's developed, of course. Even continuing development is funded by "support" contracts. If you want to ignore the costs associated with developing the platform, marketing, and running Facebook, then yeah, those icons are %100 margin. But most 010101010 things are, if you factor in only the costs of replication as costs. Um, does any software not have practically the same profit margins? I mean, once it’s developed, of course. Even continuing development is funded by “support” contracts.

If you want to ignore the costs associated with developing the platform, marketing, and running Facebook, then yeah, those icons are %100 margin. But most 010101010 things are, if you factor in only the costs of replication as costs.

]]> By: ian holsman http://yumio.net/blog/2007/07/12/price-marginal-cost/comment-page-1/#comment-2738 ian holsman Mon, 16 Jul 2007 01:05:42 +0000 http://yumio.net/blog/2007/07/12/price-marginal-cost/#comment-2738 yes, but there is also competition. I can send my friend a 3rd party application 'booze', or 'vampire bite' or whatever. The problem with digital goods is that the MC is zero, and when there is competition the price will also go to zero. yes, but there is also competition. I can send my friend a 3rd party application ‘booze’, or ‘vampire bite’ or whatever.

The problem with digital goods is that the MC is zero, and when there is competition the price will also go to zero.

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