Parker, Geoffrey G.; Alstyne, Marshall W. Van - In: Management Science 51 (2005) 10, pp. 1494-1504
How can firms profitably give away free products? This paper provides a novel answer and articulates trade-offs in a space of information product design. We introduce a formal model of two-sided network externalities based in textbook economics---a mix of Katz and Shapiro network effects, price...