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This doesn’t just apply to tech. Take healthcare, where the value created is per patient healed (oversimplified) but the pricing is per item/staff time used. Once again, people game the system, in this case by doing excess charges (see any itemized hospital bill to a private party). The U.S. government’s Center for Medicare has been trying to align the pricing model with the value created by paying flat rates for each type of surgery or illness treated. It seems to work pretty well.

Aligning value with payment is critical to success in any business.