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Re:Ask YC: Why do people value digital goods less? by bayareaguy on Monday July 07, 2008 @11:54AM (#238727)
Digital goods tend to be inferior goods with inelastic demand curves. As your income rises, your consumption of them doesn't go up after a certain point and people aren't likely to pay more for a digital good once they have something that is "good enough".

The DTrace guy blogged about this here http://blogs.sun.com/bmc/date/20040828

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