More On App Store Race To The Bottom

This post refers to tuaw.com

Richard Gaywood:

A common problem when economics amateurs consider at what level to price products is getting tangled up in the idea of how much money (or time) it cost to make; but the laws of supply and demand are cold and uncaring. If competitors are selling for $0.99, and your app isn’t clearly better than the competitor’s offerings, then you’re not going to do well selling at $3 – even if that’s what you need to cover your costs.

Great article from Gaywood that goes much deeper than my article on a similar topic did. If you found that interesting, this is definitely worth your time.