| ▲ | zigzag312 4 hours ago | |
> including things which were originally free Oh, I despise this tactic so much. It means the company has known from the start that they can't offer it for free in the long term, but decided to subsidize it in order to gain a dominant position and get rid of competition. This breaks the conditions needed for a free market dynamics to work. In other words, they win market share for reasons other than efficiency, quality, or innovation. That's why some forms of government subsidies are prohibited under certain agreements, for example. Some multinational corporations have annual revenues larger than the GDP of many countries and can easily subsidize negative pricing for years to undercut competitors, consolidate market share, and ultimately gain monopoly power. Also, the company has hinted false promises to the customer, as it signals that they have developed a business model where they can offer something for free. For example a two-sided marketplace where one side gets something for free to attract users and the other side pays (as it profits form these users). Users can't know something isn't sustainable unless the company explicitly states it in some way (e.g. this is a limited time offer). So from the user's perspective, this is a bait-and-switch tactic, where the company has used a free offer in order to manipulate the market. | ||