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