How Steve Jobs priced the New York Times

So I have been reading the biography of Steve Jobs. He took it on himself to try and save the New York Times. He argued that we knew how much traffic it would get if it was free; basically, what they got when it was free: 20 million regular visitors. He then argued that we knew how much traffic it would get if it was expensive. Basically, people pay $300 per year for a paper subscription and they have a million subscribers. Jobs then drew a line between these two options and argued that the optimal price is $5 per month at most.

The NYT times ended up charging 4 times as much.

Who was right? Try and work out whether what Jobs suggested was consistent with economic theory. Then go to the evidence.

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