MTAT.03.244 Software Economics Lecture 9: Software Pricing
MTAT.03.244 Software Economics Lecture 9: Software Pricing
MTAT.03.244 Software Economics Lecture 9: Software Pricing
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Price Discrimination<br />
• First-degree price discrimination<br />
– Price depends on the customer<br />
– Mass customization / personalization<br />
– Does it apply to software?<br />
• Second-degree price discrimination<br />
– Price depends on “product variant” or purchase volume<br />
– Price differentiation based on quality or usage/volume<br />
– Example of quality-based price discrimination:<br />
http://www.membershipadmin.com/<br />
– Example of volume-based discrimination: site licenses<br />
8
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