Razorblade model

I wrote a while back about perfectly inelastic demand and it was quite a long post

(https://honestrooster.wordpress.com/2008/09/26/demand-for-ipod-docking-station/).

Today, I heard a term in class which summarizeds the whole stroy in two words : ) RAZORBLADE MODEL!

(http://www.investopedia.com/terms/r/razor-razorblademodel.asp)

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