The “Free Parking” Business Model

Managing in environments that have strong network effects is challenging because the feedback loops accelerate change: seemingly in the blink of an eye, cash disappears; platforms like TikTok, an entertainment app, and Pinduoduo, an e-commerce business, gain hundreds of millions of users almost overnight. In other instances, network effects impede

Offering a free tier is a recurring theme for many networked products: some are ad-supported (as video and social media platforms are), others have premium features unlocked by subscription (as with more workplace/B2B products), and others are powered by microtransactions (as with marketplaces, games, and livestreaming platforms). This