Economics Homework Help

Instructions: You are asked to choose a platform (NetEase Music) that employs or has employed a freemium business model and analyze its strategy in a paper that is about 1400 words.

For the essay, you are asked to address the following questions:

1. How does the underlying technology enable a free version of the product?

2. What are the advantages and the costs of offering a free version of the product (company’s perspective)?

3. What is the impact of offering a free version of the product on the firm’s competitors?

4. Could the platform offering the product earn more by not offering a free version of the product?

Explain the assumptions (e.g. economic & behavioral assumptions for consumers) supporting your analysis and provide information and evidence to justify those assumptions.