Pay to subscribe a service payment gateway for school
Like network television shows and other search engines, Google is free but with certain strings attached. For example, the “free” programs on network television are only free to view if you own a television set or a computer–and then only if you pay your electricity bill. You’ll also have to watch commercials (or work to avoid them) if you still want to watch the programs for “free.” In the same way, the Internet is not “free” for most people, who pay to subscribe through a service payment gateway for school provider. Although you may not notice the cost because you get so much in return, somebody pays for everything. This reality disproves the fallacy of getting something for nothing.
After that cautionary note, let’s examine some “free stuff” in economic terms. Anthropologists first explored this concept with Marcel Mauss’s analysis of the potlatch, a Native American ceremony where a tribe hosts a festival and lavishes gifts on the guests who are then expected to reciprocate later. This practice constitutes a gift economy, with rituals involving exchanges of property and prestige through symbology and relationships. The Native American potlatch custom is one example of an economy based on gift exchange. More contemporary examples include open source software, which is free software developed by groups of dedicated but unpaid volunteers. The creators of open source software give users the source code for their program and the right to use, copy, modifies, and improves it. In exchange, the creators expect users’ contributions to improve the program, whether those contributions are simply comments and suggestions or actual development and testing.
Traditional scientific research is another example of a gift economy. Scientists publish their research in print journals or online and present their results at conferences. Other scientists cite their work, and the researchers become more prestigious within the scientific community as the number of citations to their work increases. The scientific community benefits from the increased pool of knowledge, and individual scientists benefit from their growing status and the awarding of more grants or funding. One final example of gift economics might be what is known as captive sales techniques. Manufacturers of inkjet printers give the printers away or sell them at ridiculously low prices, knowing they will get a return later by selling ink cartridges.
Search engines, which finance free search results by selling advertising, use what economists call a two-sided market (sometimes called a double-sided market). All media–including television, radio, magazines, and newspapers–would be far more expensive if it weren’t for advertising revenues. Other business sectors apply similar techniques: Your credit card appears to be free (or almost free) when you use it for purchases, but the merchant accepting the card pays a fee by payment gateway for college to the company that issued it and you, of course, pay interest if you carry a balance.
In every case–search engine, newspaper, or credit card–the company offers its products or services to two markets: reader and advertiser or customer and merchant. The more subscriptions or placements the company accumulates in the first market, the more services the company can sell to the second market. The more readers a newspaper has, the more ad pages it sells to advertisers. The more cardholders Visa has, the greater the number of merchants that will accept the card. When companies adopt a two-sided market model, their challenge is to find the right balance between a prices that will allow them to maximize product placements while still enabling them to sell services effectively.
Search engine companies vacillated for a long time between offering completely free services and selling low-cost subscriptions. The free service model won, largely because of the overhead that subscription transactions would have required. For example, if Internet searches had been based on paid subscriptions, users would have had to enter some sort of payment information and remember various passwords. The cost in lost users in addition to the transaction costs might actually have impeded the development of Internet search tools.