pricing

Topics: Operating system, FreeBSD, System software Pages: 3 (858 words) Published: April 3, 2014
Pricing Strategies in Software Platforms: Video Consoles vs. Operating Systems Operating system platforms charge high prices to the users and subsidize developers. However, video console firms charge low prices to users and make profits on the developers’ side. When setting prices, developers may be constrained by one of two margins, the demand margin and the competition margin. What margin is binding depends on the number of applications in the market and on the level of substitutability among them. Pricing Strategies in Software Platforms: Video Consoles vs. Operating Systems Operating system platforms charge high prices to the users and subsidize developers. However, video console firms charge low prices to users and make profits on the developers’ side. When setting prices, developers may be constrained by one of two margins, the demand margin and the competition margin. What margin is binding depends on the number of applications in the market and on the level of substitutability among them. Pricing Strategies in Software Platforms: Video Consoles vs. Operating Systems Operating system platforms charge high prices to the users and subsidize developers. However, video console firms charge low prices to users and make profits on the developers’ side. When setting prices, developers may be constrained by one of two margins, the demand margin and the competition margin. What margin is binding depends on the number of applications in the market and on the level of substitutability among them. Pricing Strategies in Software Platforms: Video Consoles vs. Operating Systems Operating system platforms charge high prices to the users and subsidize developers. However, video console firms charge low prices to users and make profits on the developers’ side. When setting prices, developers may be constrained by one of two margins, the demand margin and the competition margin. What margin is binding depends on the number of applications in the market and on the level of...
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