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The Economics of Free: Understanding the Shift in Values and Business Models, Essays (university) of Microcomputers

McGill UniversityMicrocomputers

Various aspects of the 'economics of free' through a compilation of sources. Topics include biographical details of key figures, historical contexts, and case studies. The document delves into the impact of technology on industries, the concept of micropayments, and the shifting values of consumers. It also touches upon the implications for businesses and the future of content creation and distribution.

Typology: Essays (university)

2016/2017

Uploaded on 06/30/2017

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FREE Notes
Sources and attributions:
Introduction
• Page 1: Monty Python YouTube channel: http://www.youtube.com/user/
montypython?blend=1&ob=4
Chapter 1
• Page 7: History of Jell-O from interviews with Lynne Belluscio, curator of the Jell-O
Gallery in LeRoy, NY
• Page 8: Background on Jell-O history from: http://www.jellogallery.org/
jellohistory.html
• Pages 11-12: Gillette history from Cutting Edge: Gillette's Journey to Global
Leadership by Gordon McKibben, Harvard Business School Press (2000) and King C.
Gillette: The Man and His Wonderful Shaving Device by Russell B. Adams, Little,
Brown, 1978
• Page 13: Microcosm: The Quantum Revolution in Economics and Technology,
George Gilder, Free Press, 1990
Chapter 2
• Page 18: Etymology of "free": http://www.etymonline.com/index.php?term=free
• Page 25: "two-sided markets": "Two-Sided Network Effects: A Theory of
Information Product Design". G. Parker & M. Van Alstyne. Management Science;
51(10). (Oct. 2005) pp.
1494-1504.
• Page 31: Predictably Irrational (Revised and Expanded Edition): The Hidden Forces
That Shape Our Decisions by Dan Ariely, Harper Collins, 2008
• Page 32: "Reversible business models." Derek Sivers: http://sivers.org/reversible
Chapter 3
• Pages 35-36: Source material from Zero: The Biography of a Dangerous Idea, by
Charles Seife, Viking Adult, 2000
• Pages 37-38: Usury: From the Wikipedia entry: http://en.wikipedia.org/wiki/Usury
• Page 39: Kropotkin description from the Wikipedia entry on Anarchist
Communism: http://en.wikipedia.org/wiki/Anarchist_communism
• Pages 41-42: The section on free lunch draws mostly from the excellent Wikipedia
entry on the subject: http://en.wikipedia.org/wiki/Free_lunch
• Pages 42-43: Benjamin Babbitt biographical details from his Wikipedia
entry: http://en.wikipedia.org/wiki/Benjamin_T._Babbitt
• Page 44: ASCAP vs BMI history from Encyclopedia.com's American Decades: ASCAP
vs BMI: http://www.encyclopedia.com/doc/1G2-3468301604.html
• Page 46: Haber-Bosch process, from Wikipedia entry: http://en.wikipedia.org/wiki/
Fritz_Haber
• Page 46: Ammonia production, from New World
Encyclopedia: http://www.newworldencyclopedia.org/entry/Fertilizer#cite_note-9
pf3
pf4
pf5

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FREE Notes

Sources and attributions:

Introduction

  • Page 1: Monty Python YouTube channel: http://www.youtube.com/user/ montypython?blend=1&ob=

Chapter 1

  • Page 7: History of Jell-O from interviews with Lynne Belluscio, curator of the Jell-O Gallery in LeRoy, NY
  • Page 8: Background on Jell-O history from: http://www.jellogallery.org/ jellohistory.html
  • Pages 11-12: Gillette history from Cutting Edge: Gillette's Journey to Global Leadership by Gordon McKibben, Harvard Business School Press (2000) and King C. Gillette: The Man and His Wonderful Shaving Device by Russell B. Adams, Little, Brown, 1978
  • Page 13: Microcosm: The Quantum Revolution in Economics and Technology, George Gilder, Free Press, 1990

Chapter 2

  • Page 18: Etymology of "free": http://www.etymonline.com/index.php?term=free
  • Page 25: "two-sided markets": "Two-Sided Network Effects: A Theory of Information Product Design". G. Parker & M. Van Alstyne. Management Science; 51(10). (Oct. 2005) pp. 1494-1504.
  • Page 31: Predictably Irrational (Revised and Expanded Edition): The Hidden Forces That Shape Our Decisions by Dan Ariely, Harper Collins, 2008
  • Page 32: "Reversible business models." Derek Sivers: http://sivers.org/reversible

Chapter 3

  • Pages 35-36: Source material from Zero: The Biography of a Dangerous Idea, by Charles Seife, Viking Adult, 2000
  • Pages 37-38: Usury: From the Wikipedia entry: http://en.wikipedia.org/wiki/Usury
  • Page 39: Kropotkin description from the Wikipedia entry on Anarchist Communism: http://en.wikipedia.org/wiki/Anarchist_communism
  • Pages 41-42: The section on free lunch draws mostly from the excellent Wikipedia entry on the subject: http://en.wikipedia.org/wiki/Free_lunch
  • Pages 42-43: Benjamin Babbitt biographical details from his Wikipedia entry: http://en.wikipedia.org/wiki/Benjamin_T._Babbitt
  • Page 44: ASCAP vs BMI history from Encyclopedia.com's American Decades: ASCAP vs BMI: http://www.encyclopedia.com/doc/1G2-3468301604.html
  • Page 46: Haber-Bosch process, from Wikipedia entry: http://en.wikipedia.org/wiki/ Fritz_Haber
  • Page 46: Ammonia production, from New World Encyclopedia: http://www.newworldencyclopedia.org/entry/Fertilizer#cite_note-
  • Page 47: Corn economy details from The Omnivore's Dilemma: A Natural History of Four Meals by Michael Pollan, Penguin Press, 2006
  • Page 48: Limits to Growth details from the Wikipedia entry on the book: http://en.wikipedia.org/wiki/The_Limits_to_Growth
  • Page 49: The Ehrlich-Simon bet account is drawn from an article in Wired. "The Doomslayer", by Ed Regis, February 1997: http://www.wired.com/wired/archive/ 5.02/ffsimon.html, cited in the Wikipedia entry on the bet: http://en.wikipedia.org/ wiki/Simon-Ehrlich_wager
  • Pages 50-51: Historical analogy of salt as a virtual currency: Petr Beckmann, "Too Cheap to Meter: Anatomy of a Lie": http://www.fortfreedom.org/p06.htm
  • Page 51: Source for the history of plastic: Gone Tomorrow: The Hidden Life of Garbage by Heather Rogers, New Press, 2006
  • Page 52: "Law of Conservation of Attractive Profits": discussed in The Innovator's Solution: Creating and Sustaining Successful Growth by Clayton Christensen, Harvard Business School Press, 2003, cited by Tim O'Reilly in this article: http://radar.oreilly.com/2008/10/web-20-and-cloud-computing.html
  • Page 53: "Twenty years ago...": from Unleashing the Ideavirus by Seth Godin, Hyperion, 2001

Chapter 4

  • Page 56: Village Voice interview, New York magazine: http://nymag.com/nymetro/ news/media/features/14987/index3.html
  • Page 59: Mental transaction costs: Nick Szabo: http://szabo.best.vwh.net/ micropayments.html
  • Page 61: Micropayments: Clay Shirky: http://www.shirky.com/writings/ fame_vs_fortune.html
  • Page 62: "penny gap": Josh Kopelman, First Round Capital: http://redeye.firstround.com/2007/03/the_first_penny.html
  • Page 62: "The demand you get...": Kartik Hosanagar, quoted in Knowledge@Wharton: http://knowledge.wharton.upenn.edu/ article.cfm?articleid=
  • Pages 62-63: Material on Amazon's experience with free shipping in France: Predictably Irrational (ibid)
  • Page 67: "Penny Closer" blog: http://apennycloser.com/
  • Page 68: "you're working for under minimum wage": Steve Jobs, quoted in a CNN interview: http://www.cnn.com/2003/TECH/industry/04/29/jobs.interview/
  • Page 68: DIY Drones: http://diydrones.com/
  • Page 69: Phillip Torrone and Limor Fried presentation on open source hardware business models: http://www.slideshare.net/adafruit/open-source-hardware- overview; Torrone quote from an email to the author
  • Pages 71-72: Kevin Kelly report on Cliff Harris game survey: http://www.kk.org/ thetechnium/archives/2008/08/why_people_pira.php

Chapter 5

  • Page 76: Lewis Strauss bio from PBS's American Experience: http://www.pbs.org/ wgbh/amex/bomb/peopleevents/pandeAMEX70.html
  • Page 76: Other source material on Strauss: The Canadian Nuclear Society: http://www.cns-snc.ca/media/toocheap/toocheap.html
  • Page 79: The Fairchild 1211 story is drawn from New Rules for the New Economy: 10 Radical Strategies for a Connected World, by Kevin Kelly, Viking Penguin, 1998, http://www.kk.org/newrules/newrules-4.html

Chapter 9

  • Pages 135-136: The source material for this section comes from Selling Radio, by Susan Smulyan, Smithsonian 1996
  • Pages 140-141: Jonathan Handel reasons for the devaluation of content: "Is Content Worthless?": http://www.huffingtonpost.com/jonathan-handel/is-content- worthless_b_96195.html
  • Page 142: "Advertising in traditional media...": Scott Karp, Publishing 2.0: http://publishing2.com/2007/07/26/online-publishers-need-to-stop-selling- space/
  • Page 143: "...most Web apps will be monetized...": Fred Wilson, http://www.avc.com/a_vc/2008/01/why-you-can-som.html
  • Pages 148-149: Interview with Alex Garden, former head of Nexon North America
  • Page 154: Radiohead statistics: From band's press release, cached broadly, such as here: http://www.hiponline.com/music/news/radiohead-release-sales-numbers-for- in-rainbows/
  • Page 156: "The music industry is growing....": Edgar Bronfman, quoted by Reuters: http://www.reuters.com/article/technology-media-telco-SP/ idUSN
  • Page 157: Derek Webb quote: From a personal email from the artist
  • Page 157: 50 Cent interview: Afterdawn: http://www.afterdawn.com/news/archive/ 12112.cfm
  • Page 161: "the enemy of the author...": Tim O'Reilly: http://tim.oreilly.com/pub/a/ p2p/2002/12/11/piracy.html

Chapter 10

  • Pages 163-164: Jason Kottke Facebook/Burger King calculus: http://kottke.org/09/ 01/facebooks-valuation-in-whoppers
  • Pages 165-167: Sources for the calculations on the size of the Free economy are linked in my original blog post on the subject: http://www.longtail.com/ the_long_tail/2008/07/how-big-is-the.html
  • Page 168: Kevin Kelly Web labor calculus: http://www.kk.org/thetechnium/ archives/2008/08/a_trillion_hour.php

Chapter 11

  • Page 172: Some biographical details on Cournot and the dispute with Bertrand from Cournot's Wikipedia entry: http://en.wikipedia.org/wiki/Antoine_Augustin_Cournot
  • Page 174: Discussion on Alfred Marshall from Paul Krugman, "Entertainment Values": http://www.pkarchive.org/new/values.html
  • Page 178: "Who is the gym's favorite customer...": Hal Varian, interview with the author
  • Page 178: "One of the things that fascinates me....": Russell Roberts, quoted by Timothy Lee: http://www.freedom-to-tinker.com/blog/tblee/trouble-free- riding?page=

Chapter 12

  • Page 180: Herbert Simon quote found in several places, including the Wikipedia entry for Attention Economy: http://en.wikipedia.org/wiki/Attention_economy
  • Page 182: Georg Franck quote: http://www.t0.or.at/franck/gfeconom.htm
  • Page 186: The Gift: Creativity and the Artist in the Modern World by Lewis Hyde, Vintage, 2007
  • Page 187: Andy Oram research: http://www.onlamp.com/pub/a/onlamp/2006/07/ 06/rethinking-community-documentation.html

Chapter 13

  • Page 193: Cory Doctrow, "Thinking like a dandelion": http://www.locusmag.com/ Features/2008/05/cory-doctorow-think-like-dandelion.html

Chapter 14

  • Page 201: Interview with Ed Peto
  • Page 203: China Market Research Group study: Article by co-author, Shaun Rein in ZDNet Asia: http://www.zdnetasia.com/news/software/ 0,39044164,62023662,00.htm
  • Page 204: Raustiala, Kal, and Sprigman, Christopher Jon: "The Piracy Paradox: Innovation and Intellectual Property in Fashion Design". Virginia Law Review , Vol. 92, p. 1687, 2006 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=
  • Page 206: Hermano Vianna story found in "Brazils's Two Music Industries" by Sam Howard Spink, OpenDemocracy: http://www.opendemocracy.net/media-Music/ brazil_music_3880.jsp
  • Page 206: Ronaldo Lemos study: http://icommons.org/download_banco/from-legal- commons-to-social-commons-brazil-and-the-cultural-industry-
  • Page 207: "Every licence...": from "We Pledge Allegance to the Penguin" by Julian Dibbell, Wired , November 2004: http://www.wired.com/wired/archive/12.11/ linux.html?pg=

Chapter 15

  • Page 208: "Last bastion of philosophical writing...": Clive Thompson column: Wired , Feb 2008: http://www.wired.com/techbiz/people/magazine/16-02/st_thompson
  • Page 209: "The Machine Stops", by E.M Forster, Oxford and Cambridge Review, 1909
  • Page 210: The City and the Stars by Arthur C Clarke, Harcourt, 1956
  • Page 211: Down and Out in the Magic Kingdom by Cory Doctorow, Tor, 2003
  • Page 211: The Diamond Age: Or, A Young Lady's Illustrated Primer by Neal Stephenson, Spectra, 1995
  • Page 213: Iron Bridge: http://en.wikipedia.org/wiki/The_Iron_Bridge

Chapter 16

  • Page 215: Andrew Rosenthal's interview is no longer available on Radar Online. The quoted passages can be found here: http://www.huffingtonpost.com/2007/11/07/ andrew-rosenthal-understa_n_71586.html
  • Page 216: "People with a sound education...": http://www.freesoftwaremagazine.com/community_posts/ open_source_almost_always_free
  • Page 216: TANSTAFL description: http://en.wikipedia.org/wiki/TANSTAAFL
  • Page 219: "Free isn't what it used to be...": John Schwartz, New York Times : http://www.nytimes.com/2003/11/23/business/yourmoney/23free.html
  • Page 220: "Excuse me but when has the internet been free...": Comment on this post: http://www.freesoftwaremagazine.com/columns/ save_the_internet_before_it_s_too_late