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Unformatted text preview: players and o ther co nsumer electro nics, it had a
particularly stro ng set o f assets to leverage to enco urage the ado ptio n o f Blu-ray o ver rival HD
DVD. Giving away pro ducts f o r half o f a two -sided market is an extreme example o f this kind o f behavio r,
but it’s o f ten used. In two -sided markets, yo u charge the o ne who will pay. Ado be gives away the
Acro bat reader to build a market f o r the sale o f so f tware that creates Acro bat f iles. Firms with
Yello w P age directo ries give away co untless co pies o f their pro ducts, delivered straight to yo ur
ho me, in o rder to create a market f o r selling advertising. And Go o gle do es much the same by
pro viding f ree, ad-suppo rted search. Encourage the Development of Complementary Goods
There are several ways to mo tivate o thers to create co mplementary go o ds f o r yo ur netwo rk. These
ef f o rts o f ten invo lve so me f o rm o f develo per subsidy o r o ther f ree o r disco unted service. A f irm
may charge lo wer ro yalties o r o f f er a perio d o f ro yalty-f ree licensing. It can...
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This document was uploaded on 01/31/2014.
- Winter '14