A pricing strategy where firms slowly lower a product’s price as it becomes less valuable to potential customers. For example, as certain products age (fashion and electronics), they become less valuable. As such, firms must lower their prices to continue selling their products to new customers. Additionally, different segments of consumers may value a given product differently. Once a firm has sold their product to the segment of consumers who find it most valuable (think selling a new Spider-Man video game to Spider-Man fans), there is often room to make more money by lowering the price until it becomes a good value to a new segment (action game fans). In doing so, firms attempt to extract the highest price for a given product at any instance in time.