Random Quote #25 topic: joel-on-software
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The difference between $399 and $220, i.e., $179, is called consumer surplus.
It's the extra value that those rich consumers got from their purchase that
they would have been perfectly happy to do without.

It's sort of like if you were all set to buy that new merino wool sweater, and
you thought it was going to cost $70, which is well worth it, and when you got
to Banana Republic it was on sale for only $50! Now you have an extra $20 in
found money that you would have been perfectly happy to give to the Banana
Republicans!

Yipes!

That bothers good capitalists. Gosh darn it, if you're willing to do without
it, well, give it to me! I can put it to good use, buying a SUV or condo or
Mooney or yacht one of those other things capitalists buy!

In economist jargon, capitalists want to capture the consumer surplus.

Joel Spolsky
"Camels and Rubber Duckies" (on the Pricing of Software)



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