A question about intertemporal price discrimination Usually intertemporal price discrimination worked like this :
Releasing something at higher price, then lower the price later.
But did this work in reverse too?
I've seen some example on video games where the publisher charge lower prices for in-game cosmetics at release and increasing the price later(Giving Discount at release).
Is this type of pricing strategy more effective than the usual intertemporal price discrimination?
edit :
To give you some context :  In-Game Cosmetics or Skins changes your characters appearance. which means they share some properties with Fashion in real life. They both can give prestige to their consumer(&quot;you're rich when you buy X skin&quot;).
which means if the publisher applying the usual price discrimination, when you buy a skin at release, you actually get more utility (You can use your skin more, and some additional prestige in the time where the price not yet lowered).
and usually skins are leaked before release, so the hype/publicity usually already there before the skin was released
The Problem is why there's some publisher that actually giving release discount on their skins? While charging higher at release can potentially raise their revenue and profit?
And BTW, Skins Has Effectively 0 Marginal cost, since what they do when a consumer purchase it, it just changing/editing some data on player account details on their server.
Airline seats are often priced lower when first released and the price can rise, especially as you get closer to flight time.
The effectiveness will depend on the market, pent-up demand, and thus substitution effects. There are not many substitutes for a given video game while for a flight there are many substitutes such as flying earlier or using another carrier. The intertemporal aspect comes in since people buying later were not able to plan ahead and so pay a premium versus people who did plan ahead or are able to fly later.
For something unique, a low price early on might be justifiable as generating publicity; however, I doubt extending that low price to all early buyers would be optimal.