price-discrimination


Rough Type: Nicholas Carr’s Blog: Jeff Jarvis’s cockeyed economics

Saturday, 23 January 2010, 19:19

Paul Carr defends the New York Times metered access plan with reference to economist Hal Varian's "versioning" of digital goods: "Different consumers may have radically different values for a particular information good, so techniques for differential pricing become very important … [One] particular aspect of differential pricing [is] known as quality discrimination or versioning … The point of versioning is to get the consumers to sort themselves into different groups according to their willingness to pay."

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