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AGENDA <ul><li>Final Thesis </li></ul><ul><li>Free economy </li></ul><ul><li>Christian Dahlhausen </li></ul><ul><li>Prof. ...
INTRODUCTION Picture: Anderson, Chris: http://www.longtail.com/the_long_tail/2008/02/wired-cover-sto.html [01.09.2008]
Picture:  Alex Mitrani  (2007):  http://flickr.com/photos/travellingslowly/479994983/  [15.09.2008]
<ul><li>Limited supply </li></ul><ul><li>Unlimited demand </li></ul><ul><li>Law of demand and supply </li></ul><ul><li>Mar...
<ul><li>Choice under scarcity </li></ul><ul><li>Self interest vs max profit </li></ul><ul><li>Max Utility with limited bud...
Picture: Donna Bogatin, (2007) CNET:  http://blogs.zdnet.com/micro-markets/?p=154  [15.06.2008]
<ul><li>High first-copy costs (Fixed costs) </li></ul><ul><li>Low marginal costs </li></ul><ul><li>Declining infrastructur...
<ul><li>Network effects </li></ul><ul><li>Switching costs & lock-in </li></ul><ul><ul><li>Durable purchases  (e.g. printer...
Illustration by Jeff Mermelstein
<ul><li>Over-supply </li></ul><ul><ul><li>Increasing storage & processing capacity at decreasing costs </li></ul></ul><ul>...
Pictograms: Anderson, Chris (2008):  FREE ECONOMY BUSINESS MODELS
FREE ECONOMY BUSINESS MODELS
CONCLUSION
Final Thesis: Free Economy
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Final Thesis: Free Economy

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  • interesting presentation, i would like to share this article about alierta http://www.ellibrepensador.com/2010/04/08/cesar-alierta-telefonica-es-el-aliado-ideal-para-el-nuevo-mundo-digital/
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  • Very interesting, could you contact me at michelsub2004 at gmail, for reporting on your thesis in our blog at the p2pfoundation?

    Michel
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  • Hey Chris



    Congrat for your thesis, very interesting your slides about Free Econony. could you share your thesis? Check my slide:



    http://www.slideshare.net/mhonores/the-billion-business-model-534310



    Greetings
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Final Thesis: Free Economy

  1. AGENDA <ul><li>Final Thesis </li></ul><ul><li>Free economy </li></ul><ul><li>Christian Dahlhausen </li></ul><ul><li>Prof. Dr. Rainer Clement </li></ul><ul><li>Prof. Dr. Dirk Schreiber </li></ul>Fachhochschule Bonn-Rhein-Sieg University of Applied Sciences   Fachbereich Informatik Department of Computer Science
  2. INTRODUCTION Picture: Anderson, Chris: http://www.longtail.com/the_long_tail/2008/02/wired-cover-sto.html [01.09.2008]
  3. Picture: Alex Mitrani (2007): http://flickr.com/photos/travellingslowly/479994983/ [15.09.2008]
  4. <ul><li>Limited supply </li></ul><ul><li>Unlimited demand </li></ul><ul><li>Law of demand and supply </li></ul><ul><li>Market mechanism of coordination & ownership </li></ul><ul><li>Price takers vs. price makers </li></ul>Figure: Craven, John (1990): Introduction to Economics , p.61 TRADITIONAL ECONOMY Supply, Demand & Equilibrium
  5. <ul><li>Choice under scarcity </li></ul><ul><li>Self interest vs max profit </li></ul><ul><li>Max Utility with limited budget </li></ul><ul><li>Substitute & Income effect influence demand </li></ul>Figure: Mankiw, N. Gregory and Taylor, Mark P. (2006): Microeconomics : Microeconomics, p.432 TRADITIONAL ECONOMY Consumer Behavior
  6. Picture: Donna Bogatin, (2007) CNET: http://blogs.zdnet.com/micro-markets/?p=154 [15.06.2008]
  7. <ul><li>High first-copy costs (Fixed costs) </li></ul><ul><li>Low marginal costs </li></ul><ul><li>Declining infrastructure costs (processing, storage, bandwidth) </li></ul><ul><li>Economies of networks </li></ul><ul><li>Abundance rather than scarcity </li></ul><ul><ul><li>Amazon: 2,3 Mio books </li></ul></ul><ul><ul><li>Bookshop: 40-100.000 books </li></ul></ul>Figures: compiled by author, based on Stahler (2001): Geschaftsmodelle in der digitalen Okonomie, p.197 DIGITAL ECONOMY DIGITAL GOODS HAVE…
  8. <ul><li>Network effects </li></ul><ul><li>Switching costs & lock-in </li></ul><ul><ul><li>Durable purchases (e.g. printer) </li></ul></ul><ul><ul><li>Specialized suppliers (e.g. ERP software) </li></ul></ul><ul><ul><li>Search costs (e.g. cell phone plans) </li></ul></ul><ul><ul><li>Loyalty programs (e.g. Tesco, real, etc.) </li></ul></ul><ul><li>System effects </li></ul><ul><li>Standards </li></ul>Figure: compiled by the author, based on Aufderheide, et al. (2006): Internet Okonomie, Wettbewerb und Hybriditat beiEssential Facilities, p.145 DIGITAL ECONOMY CHARACTERISTICS
  9. Illustration by Jeff Mermelstein
  10. <ul><li>Over-supply </li></ul><ul><ul><li>Increasing storage & processing capacity at decreasing costs </li></ul></ul><ul><ul><li>Unlimited “shelf-space” of digital businesses </li></ul></ul><ul><li>Demand </li></ul><ul><ul><li>Irrational behavior with free products </li></ul></ul><ul><ul><ul><li>No cost-benefit analysis at zero price </li></ul></ul></ul><ul><ul><ul><li>Difficult to map utility </li></ul></ul></ul><ul><ul><ul><li>No-cost = no disadvantage </li></ul></ul></ul><ul><li>Power of competition </li></ul><ul><ul><li>Webmail: Google & Yahoo </li></ul></ul><ul><li>Critical mass crucial </li></ul>FREE ECONOMY CHARACTERISTICS
  11. Pictograms: Anderson, Chris (2008): FREE ECONOMY BUSINESS MODELS
  12. FREE ECONOMY BUSINESS MODELS
  13. CONCLUSION

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