[jaggirs]

Why does it subtract the marginal cost? According to the formula the more it costs to make the product (per customer/sale cost) the cheaper you should sell it.

[littlestymaar]

I assumed they meant “+” (and that's indeed what's in the paper) which is “split the difference between max customer price and marginal cost”, but that doesn't seem particularly insightful nor worth writing a “research paper” for that… (I'm always baffled how low the bar is for submission in econ journals).

B basically any economic reasoning around “demand curve” and “marginal cost” is meaningless in real world situations.

[apwheele]

Yes it should be a "+", thank you.

Just because marginal cost for software can be close to zero in some circumstances does not make demand curves meaningless!