Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 2007 erstellt
Beschreibung:
Many new web-based services are introduced as free services. Depending on the selleracirc;not;quot;s business model, some remain free in the long run, while others switch to pay mode at some point in time. I characterize the relation between buyers and a new service seller when the former are uncertain about the latteracirc;not;quot;sbusiness model. I derive a natural signalling equilibrium where the seller plays a acirc;not;Slock-in-and-switchacirc;not;? strategy, while buyers play a acirc;not;Swait-and-seeacirc;not;? strategy. I show the equilibrium entails diffusion even though consumers are identical and equally aware of the new serviceacirc;not;quot;s existence