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> falling back to the perpetual license means downgrading, which is [...] something that I think many have an emotional aversion to.

They're playing on loss aversion and the endowment effect. It feels worse to lose something than to never have it, so people are more willing to pay to keep it than they would be to pay to buy it if they were never given it in the first place.

https://en.wikipedia.org/wiki/Loss_aversion



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