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The analogy to predatory pricing doesn't work because in the brick and mortar world, you drive out your competitors so that you may raise your prices. So the pr
by mustpax 14y ago
The analogy to predatory pricing doesn't work because in the brick and mortar world, you drive out your competitors so that you may raise your prices. So the price is said to be artificially lowered.
In the software world, free software products stay free even after they have become the dominant platform. The price is not artificially lowered to zero; at scale the cost of operating a free service is lower than the advertising revenue generated by it. This is actually the "natural" price for the product.
- wmf 14y agoFacebook effectively raised prices via promoted posts. Google Apps is no longer free. These may be exceptions, though.