Re:Hollywood as We Know It Is Over
by thomyorkie on Monday January 30, 2017 @07:09PM
(#13526253)
> There is a name for that: price gouging.
No, it's called value-based pricing. Price gouging is raising prices beyond what is reasonable. For almost all products and services charging a percentage of the value that the product or service creates is completely reasonable.
> What if your hospital/doctor/insurance starts doing that?
Sometimes it's quite difficult or impossible to calculate the value created by a product or service and in those instances attempting value-based pricing could lead to price gouging.
No, it's called value-based pricing. Price gouging is raising prices beyond what is reasonable. For almost all products and services charging a percentage of the value that the product or service creates is completely reasonable.
> What if your hospital/doctor/insurance starts doing that?
Sometimes it's quite difficult or impossible to calculate the value created by a product or service and in those instances attempting value-based pricing could lead to price gouging.