army1987 comments on Open Thread, June 2-15, 2013 - Less Wrong Discussion
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It's a bit of a truism that you can't do micropayments to cover the true marginal cost of serving a webpage, adding a user to your service, or other Internet activities, because the gap between free and epsilon is psychologically larger than the gap between epsilon and a dollar. It occurs to me that this curious psychology seems to map onto a logarithmic utility in money: Clearly the difference between lim(x to zero)[log(x)] and log(epsilon) is larger than the difference between log(epsilon) and log(1) for any finite value of epsilon. I'm not sure if this actually explains anything, but I thought it was kind of neat.
The inconvenience of setting up a payment method may play some role.