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Free: The Future of a Radical Price TeX Export

(07 July 2009)

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The New York Times bestselling author heralds the future of business in_Free_.In his revolutionary bestseller, _The Long Tail_, Chris Anderson demonstratedhow the online marketplace creates niche markets, allowing products andconsumers to connect in a way that has never been possible before. Now, in_Free_, he makes the compelling case that in many instances businesses canprofit more from giving things away than they can by charging for them. Farmore than a promotional gimmick, Free is a business strategy that may well beessential to a company's survival.The costs associated with the growing online economy are trending toward zeroat an incredible rate. Never in the course of human history have the primaryinputs to an industrial economy fallen in price so fast and for so long. Justthink that in 1961, a single transistor cost $10; now Intel's latest chip hastwo billion transistors and sells for $300 (or 0.000015 cents per transistor--effectively too cheap to price). The traditional economics of scarcity justdon't apply to bandwidth, processing power, and hard-drive storage.Yet this is just one engine behind the new Free, a reality that goes beyond amarketing gimmick or a cross-subsidy. Anderson also points to the growth ofthe reputation economy; explains different models for unleashing the power ofFree; and shows how to compete when your competitors are giving away whatyou're trying to sell.In _Free_, Chris Anderson explores this radical idea for the new globaleconomy and demonstrates how this revolutionary price can be harnessed for thebenefit of consumers _and_ businesses alike.


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