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Unit 3 Micro: DropBox - Network Economics and Market Contestability

Geoff Riley

25th December 2012

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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 contentThe complete guide to freemium business models

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Geoff Riley

Geoff Riley FRSA has been teaching Economics for nearly forty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD and Revision conferences in the UK and overseas.

@tutor2uGeoff

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