Unit 3 Micro: DropBox - Network Economics and Market Contestability

Here is a superb blog from the Economist magazine into a digital business built around the Freemium pricing model and where network effects are strong. Also good for understanding market contestability and the impact of new entrants on profit margins. Dropbox is my preferred file sharing system, I am pretty much locked in and wouldn't change!

Freemium is a business model in which some basic services are provided for free, with the aim of enticing users to pay for additional, premium features or content

The complete guide to freemium business models

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