The economics of iPhone pricing
Apple's surprising misstep on iPhone pricing could have come about because the company's executives took too many economics classes, and not enough psychology courses.
Earlier this summer it seemed Apple could do no wrong on the marketing and public relations front, but the company clearly did not foresee how its early adopters would react to the $200 drop in the price of the iPhone announced by CEO Steve Jobs last Wednesday. Steven Levitt, the man behind the book Freakonomics and currently writing a blog of the same name at The New York Times, has an interesting post today … Read more