Concepedia

Freemium as an Optimal Strategy for Market Dominant Firms

Zijun Shi, Kaifu Zhang, Kannan Srinivasan

Marketing Science · 2019 · 84 citations · 15 references

Concepts

BusinessBusiness EconomicsStrategic ManagementBusiness StrategyIndustrial OrganizationNetwork EffectsDirect Network ExternalitiesIndirect Network ExternalitiesIntervention By Dominant FirmsNetwork Effects In Competition

Abstract

We explain why dominant firms give away good-quality products for free when network externalities are present.

References

15

Monopoly and product quality

Michael Mussa, Sherwin Rosen · Journal of Economic Theory · 1978 · 3.4K citations

Social Sciences, Business Economics, Economics +9

Two-sided markets: a progress report

Jean-Charles Rochet, Jean Tirole · The RAND Journal of Economics · 2006 · 3K citations

Business, Business Economics, Economics +13

A Strategic Model of Social and Economic Networks

Matthew O. Jackson, Asher Wolinsky · Journal of Economic Theory · 1996 · 2.7K citations · Full text

Social Sciences, Economics, Business Strategy +12

Technology Adoption in the Presence of Network Externalities

Michael L. Katz, Carl Shapiro · Journal of Political Economy · 1986 · 2.7K citations

Management, Strategic Management, Technology Management +16

Pricing and commitment by two-sided platforms

Andrei Hagiu · The RAND Journal of Economics · 2006 · 555 citations

Business, Business Economics, Economics +17