Subject: Re: People only buy support for bad software ?!?
From: Russell Nelson <>
Date: 3 Jun 1999 13:06:09 -0000

Stephen J. Turnbull writes:
 > I'm not going to discuss the analysis on FSB.  It's a theorem, proved
 > in 1926 (IIRC), but the bandwidth-to-education ratio on this topic has
 > been near infinity in the past---so I refuse to argue.  See Shapiro
 > and Varian's _Information Rules_, chapter on "Versioning" for the
 > mechanism in the context of software.  Then any moderately advanced
 > industry economics textbook for "Ramsey pricing" in general.  Also
 > "price discriminating monopolies."  A good one will explain the
 > relationship; a side-by-side comparison of the pricing formulae should
 > be enough for you though.

David Friedman's _Hidden Order_ is also a good painless introduction
to price theory.  And if you're going to be setting prices, in a
business, you ought to understand price theory.

-russ nelson <>
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