#6876307, By intpleeus The Economics of the Game of the Year Edition

  • intpleeus 7 Jan 2011 17:51:49 28 posts
    Seen 3 months ago
    Registered 9 years ago

    Pick whatever upcoming release you are most excited by, and ask yourself how much you would be willing to pay to get it today. Presumably, your answer would differ according to the expected release date. If the game is going to be released in one month, then you might only pay 10 percent more to get it today, while if the game is not coming out for another year, then you might be willing to pay 50 or 100 percent more to get it today. Why the difference? Because waiting is costly. All else being equal, people like goods and services sooner rather than later: we are charged a premium for consuming goods sooner and enjoy a discount for consuming goods later. This is where interest rates come from.
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