The Simultaneous Pricing Paradox
The Simultaneous Pricing Paradox Economic Law #8 “You can’t have your cake and eat it too.” — Traditional economics “Watch me.” — Liana Banyan The False Dichotomy Every business school teaches the same pricing lesson: Price Skimming: Start high, capture early adopter surplus Gradually lower price to reach broader market Risk: Slow market penetration, competitors undercut Market Penetration: Start low, maximize market share Build volume, then potentially raise prices Risk: Leave money on the table, attract price-sensitive customers The Conventional Wisdom: You must choose one. They are mutually exclusive strategies. ...