bogus comments on Ethics of piracy - Less Wrong Discussion
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/s/marginal/average here. Like most firms facing fixed costs (including e.g. retail businesses), Adobe needs to defray these by charging a markup over marginal cost.
Yes, with the proviso that there might be ways to defray these costs efficiently after all. For instance, use a provision-point contract (as seen from Groupon, Kickstarter, etc.) to pay for the fixed costs, and sell the product at marginal cost (zero in the software case). [This doesn't solve all issues, e.g. because markups also have good incentive properties; but it is a huge step forward.]
In practice, price discrimination also helps; if Adobe can figure out Puya Sharif's willingness-to-pay, they will sell him Photoshop at a lower price. Firms can approximate this outcome by creating a scaled-down version of the product (say, Photoshop Elements) which will sell to low-demand customers without cannibalizing sales of the up-market version (Photoshop proper).