What is Price Discovery? Ask the Music Biz

I was listening to a really interesting story about variable pricing in the music industry on NPR’s Morning Edition this week. The price discrepancies on Depeche Mode’s new album perfectly illustrated the concept of price discovery.  
The new album by Depeche Mode, “Sounds of the Universe” is priced at a low $3.99 on Amazon, and $9.99 on iTunes. Because of iTunes recent switch to a Digital Rights Management-free delivery model (enabling downloaded songs to be played on any type of play, not just the Apple  iPod), this is the same product.
So what’s it really worth?
That’s what Price Discovery aims to determine. Technically, the …read more