Reasons For Price Skimming
Price skimming occurs in mostly technological markets as firms set a high price during the first stage of the product life cycle. The top segment of the market which are willing to pay the highest price are skimmed of first. When the product enters maturity the price is lowered.
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Famous quotes containing the words reasons for, reasons and/or price:
“Here we also see: what this divinity lacks is not only a sense of shame—and there are also other reasons for conjecturing that in several respects all of the gods could learn from us humans. We humans are—more humane.”
—Friedrich Nietzsche (1844–1900)
“The source of Pyrrhonism comes from failing to distinguish between a demonstration, a proof and a probability. A demonstration supposes that the contradictory idea is impossible; a proof of fact is where all the reasons lead to belief, without there being any pretext for doubt; a probability is where the reasons for belief are stronger than those for doubting.”
—Andrew Michael Ramsay (1686–1743)
“It doesn’t do good to open doors for someone who doesn’t have the price to get in. If he has the price, he may not need the laws. There is no law saying the Negro has to live in Harlem or Watts.”
—Ronald Reagan (b. 1911)