Free! Why $0.00 Is the Future of Business

Wired Magazine's Chris Anderson outlines a "freeconomics" business model: digital technology, deflationary prices, externalities and network effects. Anderson uses King Gilette and Carver Mead to justify his business model, and includes a taxonomy of 6 variations from "freemium" to "gift economy". The key shift is from a two-way market that is zero-sum to a three-way market in which at least one player receives the goods for free: publishers who sell free readers to advertisers. Economists will debate Anderson's views on externalities and pricing; Cory Doctorow praises Anderson's vision. Anderson's article is an excerpt from his new book FREE (New York: Hyperion, 2009). So, will Hyperion give Anderson's FREE away for free?


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