The power of sharing in business

"Ignore basic economic principles at your own risk. Technology changes. Economic laws do not." Carl Shapiro and Hal R. Varian in Information Rules

Agenda ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Wikipedia: The free encyclopedia

Wikipedia Approximately 55 million visitors per month

Google Approximately 130 million visitors per month

Facebook: Free social networking

Facebook Approximately 33 million visitors per month

Microeconomics of traditional goods (the past) ,[object Object],Price Quantity Supply Demand P1 Q1

Microeconomics of traditional goods (the past) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Price Quantity Supply Demand P1 Q1

Microeconomics of traditional goods (examples) www.dell.com www.travelocity.com www. jcpenney .com

Microeconomics of shared goods (the present) You receive a free good in internet, such as free search engine service, free calls from PC to PC, free social networking, etc. Price Quantity Demand P2 Q2

Microeconomics of shared goods (the present) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Price Quantity Demand P2 Q2

Microeconomics of shared goods (examples) www.wikipedia.org www.google.com www.skype.com

Microeconomics of incentives (the future) You receive an incentive in a social currency such as ringtones, music, videos, minutes of calling, text messaging, SMS, etc. for using or buying a good, mainly advertising Price Quantity Demand P3 Q3 0

Microeconomics of incentives (the future) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Price Quantity Demand P3 Q3 0

Microeconomics of incentives (examples) search.live.com/cashback www.virginmobileusa.com/stuff/sugarmama.do Incentives is a new business model. This model will be used widely in the mobile world. Free ringtones, music, videos, minutes of calling, text messaging, SMS, etc. for watching advertising www.yourexample.com

Microeconomics 101 conclusions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Public and private goods theory ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Rivalry ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Excludability ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Public and private goods theory Public goods Collective goods Non-rivalrous Common goods / (Common-pool resources) Private goods Rivalrous Non-excludable Excludable Type of goods

Public and private goods theory ,[object Object],[object Object],[object Object],[object Object]

Private goods (examples) www.dell.com www.travelocity.com www. jcpenney .com

Public and private goods theory ,[object Object],[object Object],[object Object],[object Object],[object Object]

Public and private goods theory ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Collective goods (examples) iTunes Store www.aol.com www.diamondlounge.com

Public and private goods theory ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Public goods Examples www.facebook.com www.wikipedia.org www.google.com

So what the bleep can I share? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

In the hyper connected world free riders are welcomed!!!

How many potential clients can I get if I share? ,[object Object],[object Object]

[object Object],[object Object],How many potential clients can I get if I share?

[object Object],[object Object],[object Object],How many potential clients can I get if I share?

Coming soon: What to sell in the hyper connected world

Marcelo Honores Economist, Master in E-Business, 15 years experience in IT “ The billion business model” consultant [email_address] (511) 9924-22131 The Billion Business Model saga

The power of sharing in business

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