Competing for Free

A feature of many digital platforms is that they offer services to one side of the platform “for free.” In some instances, the business model requires the consumer to trade their data and attention in return for “free” services. We consider how providing consumers with a service that is ‘free’ can provide consumer benefits but also make it harder for potential rivals to contest that market, since it can be very difficult to undercut an incumbent selling goods for “free.” Price re