Extraordinarily strange way of filming this. Extremely good extemporaneous-seeming speaking. Good/interesting content. Worth the listen.
With loss leaders, we all lose. Summary: "We show that large retailers, competing with smaller stores that carry a narrower range, can exercise market power by pricing below cost some of the products also offered by the smaller rivals, in order to discriminate multistop shoppers from one-stop shoppers. Loss leading thus appears as an exploitative device rather than as an exclusionary instrument, although it hurts the smaller rivals as well; banning below-cost pricing increases consumer surplus, rivals' profits, and social welfare. Our insights extend to industries where established firms compete with entrants offering fewer products. They also apply to complementary products such as platforms and applications."
"How could the flow of high-quality music continue despite sharp reductions in firms’ ability to appropriate revenue. The puzzle’s resolution may lie in the observation that technological change has not only reduced effective demand; it has also reduced costs of bringing music to market. The costs of creation, promotion, and distribution have all been revolutionised by new information and communications technologies."
A bloggy lit review on the economics of FOSS.
"The model aimed to rationalize several puzzles observed in the industry, such as why Red Hat, a high-quality firm, contributes significantly more to Linux than any other firm and why a market with mandatory sharing can actually produce higher-quality products than a proprietary market."
