Keith Jarrett’s “Multitude of Angels” iTunes: $54.99 AMZN MP3: $51.49 AMZN CD, includes MP3 download: $46.49 What are the economics here?
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Replying to @dangerdave
price is proportional to value, not cost. iTunes costs more because it is "more convenient" to iPhone users.
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Replying to @dangerdave
same. The two are approximately different customer bases.
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Replying to @loganb @dangerdave
bundling the MP3s for a cd buyer boosts sales. Independently, $51 is the profit-maximizing MP3 only price
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Replying to @loganb @dangerdave
expoilts the fact that buyers that purchase MP3s don't have complete knowledge of all substitute products
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Replying to @loganb @dangerdave
that is, they don't consider buying the cd a substitute for the MP3 so they don't research that option
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Replying to @loganb
I should have mentioned it’s not a consistent pricing pattern for AMZN autorip CDs. Sometimes CD+MP3 more expensive; sometimes not.
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Replying to @dangerdave @loganb
(This said, your explanation is the straightforward/expected one.)
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doesn't this explanation assume that someone's actually paying attention?
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