Common Contracts
1 similar End User License Agreement contracts
L F WEnd User License Agreement • August 12th, 2024
This is how platforms are able to provide services at zero prices. In some cases, external benefits are greater than the combination of cost and market power. Again, newspapers provide a good example. The external benefit of advertisers from the presence of readers outweighs the marginal cost and market power. For the side of advertisers, the P J N J term is negative since readers receive negative benefits from the increased presence of advertising. As such, the platforms charge higher prices on the side of advertisers by the amount, P J N J . To be more explicit, multiplying a negative value of P J N by the negative sign in the last term of the expression in equation 2.8 results in a positive value. For instance, let’s say that the marginal cost of producing a newspaper ad is $ 0.5 per unit. On the readers’ side, the platform loses a $ 1 of revenues for each unit of advertising. This is because readers are annoyed by the presence of advertising and some readers might not subscribe to
