© 2006 Institute of Information Management National Chiao Tung University Example 2 : Differential Pricing Can Benefit Consumers 1000 consumers wtp $20, 100 people wtp $6 for early, $5 for later Optimal flat price = $20 –Revenue=$20000 (20x1000) Versioning: sell for (early, $20) and (later, $5) –Revenue=$20500 (20x1000+5x100) Key: will versioning increase size of market.
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