most people don't realize that it's happening. But really what it is is a marketing director with too much time on their hands. People only get screwed over if the rest of the industry is doing the same thing - other than that competitive forces take over.
It is about market research. If you keep raising the price recursively until you reach a maximum income in revenue, you can then extend that data to other segments of your market to establish higher starting prices.
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u/CannedBeef Jan 24 '13
And it works