Chris Anderson Podcast on Economics of "Free"
By Arnold Kling
There are several interesting topics covered in this podcast between Russ Roberts and Chris Anderson. The general topic is the disruptive impact of computers and communication technology, and in particular the tendency for prices to fall to zero for things like email accounts. My favorite interchange comes late in the podcast, when Anderson quotes an unnamed entrepreneur to the effect that it’s great to turn a $4 billion industry into a $4 million industry. That is a pithy way to summarize what Schumpeter called creative destruction.