Comments on: A tired attempt to scare you away from freeconomics http://www.crunchgear.com/2008/02/27/a-tired-attempt-to-scare-you-away-from-freeconomics/ Gadgets, gear and computer hardware. Sun, 29 Nov 2009 00:50:55 -0500 hourly 1 By: simon http://www.crunchgear.com/2008/02/27/a-tired-attempt-to-scare-you-away-from-freeconomics/comment-page-1/#comment-601053 simon Thu, 28 Feb 2008 22:05:10 +0000 http://www.crunchgear.com/2008/02/27/a-tired-attempt-to-scare-you-away-from-freeconomics/#comment-601053 I believe this is a similar argument to the "dumping" argument, which I most recently associate with Microsoft. The argument goes: if a company "dumps" its product at a below market (probably below cost) price in order to take over the market, it could have adverse affects for the consumer in the long run as the competition goes out of business, and leaves the dumper with the ability to raise prices as a monopolist. The analogy to MSFT would be bundling the browser with the OS, putting Netscape out of business. A lot of people were upset about that, but I see it as a similar situation to that of gmail/y! mail. I believe this is a similar argument to the “dumping” argument, which I most recently associate with Microsoft.

The argument goes: if a company “dumps” its product at a below market (probably below cost) price in order to take over the market, it could have adverse affects for the consumer in the long run as the competition goes out of business, and leaves the dumper with the ability to raise prices as a monopolist.

The analogy to MSFT would be bundling the browser with the OS, putting Netscape out of business. A lot of people were upset about that, but I see it as a similar situation to that of gmail/y! mail.

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