Slashdot Mirror
The Economics of Free
Wired's editor-in-chief Chris Anderson is working on a new book, to be published next year, about the idea of "free" in the old and new economies. Wired is running a long excerpt from the book and some sidebars about the economics of giving away, e.g., CDs and directory assistance. Techdirt has a few quibbles about Anderson's ideas — mostly areas in which he may be shading the argument to sell more books — but mostly buys that the equations of economics continue to work when zeros are plugged in in judicious places.
Silicon Valley has and continues to derive the vast majority of its income from intellectual property protections for its software.
Silicon Valley makes most of its money from hardware. That was just a short list off the top of my head. Notice that they're all valued in the billions, 10's of billions, and 100's of billions.
Because then normal people don't know what you're talking about.
(Yes, contrary to what NERD RAAAAAGE will tell you, this is important. If normal people can't understand you, they'll write you off.)
"You can either have software quality or you can have pointer arithmetic, but you cannot have both at the same time."
Lawrence Lessig has made his Free Culture book available for free. Chris Anderson is not very credible unless he does the same with his book.
Google SMS is much better, almost as good as having an active internet connection.
"Nothing excites jaded grandmasters like a Theoretical Novelty" - Dominic Lawson
Actually, yes:
Read my blog.
And then gave the money away to charity, 'cause she didn't need it.
One swallow does not a fellatrix make
NiN may be giving away the raw audiomixes for Year Zero, but that's in a format that 99% of customers don't want to dork around with. It generates some buzz from those who think it's neat, and is "free" to those very few who actually use it, but most just shell out the $18.99 for the CD anyway. Those who go the literal "free" route with Year Zero "pay" by creating buzz often, to a non-trivial degree, by using the raw tracks to remix into other material that raises more awareness; NiN is buying advertising by giving away samples instead of $$$.
Goes to show that "free" hey-here's-the-whole-shebang-and-more doesn't work the way people claim they want it to. Most want FUN, NOW and are willing to pay for it.
Can we get a "-1 Wrong" moderation option?
I heard a story on NPR a week ago about a new book by MIT Professor, Dan Ariely, talking about what happens to our "rationality" when we are offered something for free. From the interview, it sounds like the rules of economics break down when we are offered something free.
http://www.predictablyirrational.com/http://www.npr.org/templates/story/story.php?storyId=19231906&ft=1&f=2
Actually, market value is 100% subjectively extrinsic for absolutely every single good and service. Cost of production is completely immaterial to value. Example: an original Pablo Picasso painting consisting of canvass and paint costing less than $10 may be 100% subjectively extrinsically valued at ten million dollars while the public works ditch dug by 100 laborers during the day shift and filled back in by 100 laborers during the night shift for 1 year straight may be subjectively extrinsically valued at zero dollars.
"From DNA to P2P, we are all Copycats now. Go Go Copycat Power! Copycat Powers activate! Form of, a Copycat." --monxrtr