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Saturday, July 16, 2005
Snowball Effect
Case study.
Think about this in the context of demand and price discrimination. The price to the first few people that discussed was zero (plus bandwidth). Then, the price was the aggregate value of blog ads on discussing entries (plus bandwidth) Now, the price is the value of the NYT's ad revenues from this story (plus bandwidth). A very nice example of Media 2.0 reverse price discrimination along an upwards sloping demand curve - the total inversion of Media 1.0 price discrimination and demand.
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