"The point," he says, "is that economic theory says that can't happen. But it does."

Fast Company, Which Price is Right? : http://pf.fastcompany.com/magazine/68/pricing.html

Capitalism has always argued that price is not equal to cost, because it depends on demand. Commodities have a price floating, set by the market. But because the market can set a price below cost, it leads to TheAgeOfAmateurs

All about PricingSoftware

Summary : introduce a high-end product and people irrationally start buying your old high-end, now medium-range product on the grounds that it's the compromise between the worst and the best. (See also HappyMedium, JoelSpolsky : http://www.joelonsoftware.com/items/2004/10/26.html))

Sun auction their servers on EBay to find the right price. http://blogs.sun.com/roller/page/jonathan/20040730

Our view is that by adding an operating system, we ought to be able to directly connect our outsourced manufacturers to eBay, sell through our entire capacity with a reserve price at $1 – and never touch a box.

Not entirely understanding all this user-defined pricing thing. But need to :http://www.aweissman.com/2007/10/amie-st-is-future.html