Goods like news, podcasts, and websites where the marginal cost of one more audience member is near zero can be financed better by giving the product away free and soliciting donations than by charging subscriptions, because donors are attracted by the large reach a free product achieves—inverting the standard Samuelsonian public-goods story.

causalpending

Speaker

Russ Roberts

Evidence Quote

the out-of-pocket costs the consumers zero will allow people to collect more donations because they'll say look we can't fund this out of char by charging for it

Source

Mike Munger on Love, Money, Profits, and Non-profits 04/19/2010EconTalk
Created: 6/17/2026, 10:31:45 AM

My Notes

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