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Smart Pricing: How Google, Priceline, and Leading Businesses Use Pricing Innovation for Profitability by Z. John Zhang, Jagmohan Raju

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2. Why the Best Things in Life Are Free

“We have to look at today’s economy and say, ‘What is it that’s really scarce in the Internet economy?’ And the answer is attention.”Hal Varian, Chief Economist of Google and Professor of Information Sciences, Business, and Economics at University of California at Berkeley

Imagine you are the marketing manager of a diversified services company. Thanks to advanced technology, some of it proprietary, your company can deliver information in a moment that would once have taken thousands of people thousands of hours to research, including the content of millions of books and scholarly papers. You also make it easy for people all over the world to organize and swap their photos, translate documents to and from ...

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