In this lecture we will look at the pricing behaviour of firms online. In particular, we'll ask why Twitter is free, why most people don't pay for Evernote, why no-one will ever pay for Facebook, and why Cory Doctorow can give his books away for nothing and still make a very decent living.
One very interesting paper in this area is Two-Sided Network Effects: A Theory of Information Product Design, by Van Alstyne and Parker, available here.
Here's the lecture audio, apologies for the crappy quality, not sure what went wrong.
Economics for Business Lecture 4 from Stephen Kinsella on Vimeo.