The Free-of-Charge Phenomena in the Network Economy—A Multi-Party Value Exchange Model
The long-standing economic model is one where customers receive and pay for goods and services. However, in today’s modern network economy, why are vendors willing to provide free services and goods to free-riders at an apparent loss? The objective of this study is to provide a theoretical framework...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-10-01
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| Series: | Journal of Theoretical and Applied Electronic Commerce Research |
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| Online Access: | https://www.mdpi.com/0718-1876/16/7/163 |
| _version_ | 1797503039921192960 |
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| author | Ya-Wen Lin Tsung-Xian Lin Cheng-Kiang Farn |
| author_facet | Ya-Wen Lin Tsung-Xian Lin Cheng-Kiang Farn |
| author_sort | Ya-Wen Lin |
| collection | DOAJ |
| description | The long-standing economic model is one where customers receive and pay for goods and services. However, in today’s modern network economy, why are vendors willing to provide free services and goods to free-riders at an apparent loss? The objective of this study is to provide a theoretical framework explaining why free network services emerge and how they work. This study adopted the multi-case study method, summarized 28 types of revenue model patterns from 51 indicative free network services, and inferred the causes for the antecedent conditions of each revenue model with Qualitative Comparative Analysis (QCA), in order to confirm the causal relationship between the various antecedent conditions, configurations, and revenue models as conclusive evidence. In addition, this study established seven conditional propositions via their links with related theories, which were taken as the basis for providing in-depth explanations of the revenue model of the free network service, and expanded the demonstration of the original network economy. |
| first_indexed | 2024-03-10T03:44:49Z |
| format | Article |
| id | doaj.art-4209ca35283e4b3684fd5e580143b8e9 |
| institution | Directory Open Access Journal |
| issn | 0718-1876 |
| language | English |
| last_indexed | 2024-03-10T03:44:49Z |
| publishDate | 2021-10-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Journal of Theoretical and Applied Electronic Commerce Research |
| spelling | doaj.art-4209ca35283e4b3684fd5e580143b8e92023-11-23T09:09:33ZengMDPI AGJournal of Theoretical and Applied Electronic Commerce Research0718-18762021-10-011672981300210.3390/jtaer16070163The Free-of-Charge Phenomena in the Network Economy—A Multi-Party Value Exchange ModelYa-Wen Lin0Tsung-Xian Lin1Cheng-Kiang Farn2Department of Information Management, Fu-Jen Catholic University, New Taipei City 242062, TaiwanSchool of Management, Guangzhou Huashang College, Guangzhou 511300, ChinaDepartment of Information Management, National Central University, Taoyuan 320317, TaiwanThe long-standing economic model is one where customers receive and pay for goods and services. However, in today’s modern network economy, why are vendors willing to provide free services and goods to free-riders at an apparent loss? The objective of this study is to provide a theoretical framework explaining why free network services emerge and how they work. This study adopted the multi-case study method, summarized 28 types of revenue model patterns from 51 indicative free network services, and inferred the causes for the antecedent conditions of each revenue model with Qualitative Comparative Analysis (QCA), in order to confirm the causal relationship between the various antecedent conditions, configurations, and revenue models as conclusive evidence. In addition, this study established seven conditional propositions via their links with related theories, which were taken as the basis for providing in-depth explanations of the revenue model of the free network service, and expanded the demonstration of the original network economy.https://www.mdpi.com/0718-1876/16/7/163free-ridernetwork effectmulti-sided marketsnetwork economycase study |
| spellingShingle | Ya-Wen Lin Tsung-Xian Lin Cheng-Kiang Farn The Free-of-Charge Phenomena in the Network Economy—A Multi-Party Value Exchange Model Journal of Theoretical and Applied Electronic Commerce Research free-rider network effect multi-sided markets network economy case study |
| title | The Free-of-Charge Phenomena in the Network Economy—A Multi-Party Value Exchange Model |
| title_full | The Free-of-Charge Phenomena in the Network Economy—A Multi-Party Value Exchange Model |
| title_fullStr | The Free-of-Charge Phenomena in the Network Economy—A Multi-Party Value Exchange Model |
| title_full_unstemmed | The Free-of-Charge Phenomena in the Network Economy—A Multi-Party Value Exchange Model |
| title_short | The Free-of-Charge Phenomena in the Network Economy—A Multi-Party Value Exchange Model |
| title_sort | free of charge phenomena in the network economy a multi party value exchange model |
| topic | free-rider network effect multi-sided markets network economy case study |
| url | https://www.mdpi.com/0718-1876/16/7/163 |
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