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Technology Stocks : America On-Line: will it survive ...?
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To: yard_man who wrote (7854)2/13/1998 7:04:00 PM
From: Steve Robinett  Read Replies (2) of 13594
 
Barry, Assuming for the moment the $21.95/mo rate doesn't stick--that is, AOL learns the meaning of elasticity of demand--how will AOL roll back prices? My guess is they will not just lose face and drop the price back to $19.95. Instead, they will come up with some sort of discount system--say, points earning by buying something from AOL vendors. If anything like that shows up over the next few months, I would take it as evidence that the $21.95 price is hurting them.
Best,
-Steve
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