Frontier products command higher prices, shaping fierce competition in tech market.
The study looked at how companies decide on prices for different products in their lineup. They found that products with better features usually cost more. Prices tend to be higher for products that are the best in the market or in a company's lineup. Lower-ranked products may also have higher prices. Companies try to set prices to avoid hurting sales of their other products. Prices tend to go down the further away a product is from being the best in the market or in a company's lineup. Consumers prefer top-tier products, so competition is weaker for those. Prices may be higher if a company offers products with slightly different features to prevent losing sales.