According to Ariely, why doesn’t the demand for an item increase when the item is offered for free?
Nobody wants what obviously isn’t in demand (and it must not be if it’s free).
In a market economy price is most often a signal of quality and free items are assumed to be of low quality.
At no cost, the item is understood to be a public good, and is consumed more conservatively.
As club goods, free items create artificial scarcity, which does not actually increase demand.
Diminishing marginal returns means that reducing prices below a certain point produces negligible increases in demand.