The Claude Code Max pricing model implicitly expects usage to stay fixed.
- The Claude Code Max pricing model implicitly expects usage to stay fixed.
- That is, to have inelastic demand.
- However, the demand is highly elastic.
- The cheaper the tokens, the more tasks that are worth doing, so you get more usage.[ac]
- Back in the day, Google Photo's free pricing tier made the same miscalculation[ad].
- It led to the service being significantly more expensive to run than the bean counters naively thought it would be.