Summary book 'free' - The penny gap - Revision history

Dirkjan at 20:03, 27 August 2020

2020-08-27T20:03:48Z

Dirkjan: Replaced content with "Summary book 'free' - The penny gap Category:mbi"

2020-08-27T19:21:43Z

Replaced content with "Summary book 'free' - The penny gap Category:mbi"

Dirkjan: Created page with "he 'penny gap' refers to the phenomenon that buyers do not even want to spend the lowest price (1 cent). Reasons are that we are starting to think about choice with any price...."

2020-08-25T08:07:51Z

Created page with "he 'penny gap' refers to the phenomenon that buyers do not even want to spend the lowest price (1 cent). Reasons are that we are starting to think about choice with any price...."

New page

he 'penny gap' refers to the phenomenon that buyers do not even want to spend the lowest price (1 cent). Reasons are that we are starting to think about choice with any price. [[http://szabo.best.vwh.net/|Nick Szabo]] called this "mental transaction costs": we do not want to think about anything unless we really have to. He claimed that the system of micropayments was doomed to failure because they limit economical cost but not the cognitive costs.Josh Kopelman (First Round Capital) discovered that traditional price theory became irrelevant. There is only 'free' and 'all the other models'. Free turns around the demand curve. The biggest gap in any venture is between a product or service 'for free' and any price.
[[Category:mbi]]

← Older revision		Revision as of 20:03, 27 August 2020
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−	~~Summary book~~ 'free' - The ~~penny~~ gap	+	he 'penny gap' refers to the phenomenon that buyers do not even want to spend the lowest price (1 cent). Reasons are that we are starting to think about choice with any price. [[http://szabo.best.vwh.net/\|Nick Szabo]] called this "mental transaction costs": we do not want to think about anything unless we really have to. He claimed that the system of micropayments was doomed to failure because they limit economical cost but not the cognitive costs.Josh Kopelman (First Round Capital) discovered that traditional price theory became irrelevant. There is only 'free' and 'all the other models'. Free turns around the demand curve. The biggest gap in any venture is between a product or service 'for free' and any price.
	[[Category:mbi]]		[[Category:mbi]]

← Older revision		Revision as of 19:21, 27 August 2020
Line 1:		Line 1:
−	he 'penny gap' refers to the phenomenon that buyers do not even want to spend the lowest price (1 cent). Reasons are that we are starting to think about choice with any price. [[http://szabo.best.vwh.net/\|Nick Szabo]] called this "mental transaction costs": we do not want to think about anything unless we really have to. He claimed that the system of micropayments was doomed to failure because they limit economical cost but not the cognitive costs.Josh Kopelman (First Round Capital) discovered that traditional price theory became irrelevant. There is only 'free' ~~and 'all the other models'. Free turns around the demand curve.~~ The ~~biggest~~ gap ~~in any venture is between a product or service 'for free' and any price.~~	+	Summary book 'free' - The penny gap
	[[Category:mbi]]		[[Category:mbi]]