"Palladium" and TCPA

Ian Brown I.Brown@cs.ucl.ac.uk
Mon, 1 Jul 2002 00:42:46 +0100


Markus Kuhn wrote
> If you charge everyone exacly what
> they are able to pay, more people can afford to use your product and
> everyone pays less than they would have to with a simple one-fits-all
> pricing scheme.

Many of your customers pay more, because the utility of the product is
higher to them than the one-size-fits all price, and effective differential
pricing allows the producer to capture some of that higher value. But this
then allows the producer to charge other customers less.

Economically efficient, but enormously unpopular with many consumers (think
of the outrage you hear over difference in air ticket prices).