From a business perspective converting every potential customer to a happy paying customer that you can profit from is the best. Extracting the highest dollar that each customer is happy to pay will make you the most money but is very hard to do.<p>Flat pricing can keep some customers that would have paid more from having to do so, which is one reason I like it so much as a consumer.<p>I am amazed with the success of <a href="http://www.humblebundle.com/" rel="nofollow">http://www.humblebundle.com/</a> in non traditional pricing. more economics should be built around what people are happy to pay.