Monday, July 06, 2009

How Do We Measure Free?

Over the weekend, with people cheering freedom everywhere, I couldn't help but wonder how economists will deal with the trend of zero retail price (i.e. free) in measuring economic growth. In a world of Wikipedia and open source, and various other products provided at zero price, how do we measure GDP? Do we put more emphasis on the value-added approach?

If you believe Chris Anderson, this will only become more important over time.

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