Runge, Julian; Nair, Harikesh; Levav, Jonathan - 2019 - This draft: March 18, 2019
The “freemium” model for digital goods involves selling a base version of the product for free, and making premium … convert free users to paying ones. Price promotions (or “sales”) are often used in freemium to induce the conversion. However … periods with low prices, or use them as signals of low product quality. These long-run concerns may be accentuated in freemium …