| Popis: |
Mobile apps can either charge a price or display an advertisement to generate revenue. This complicates the comparative statics of mobile app competition because the changes in environments affect the app developers' choice of revenue sources, which may overturn the effects of standard price and advertisement pass-through. We propose an empirical model of mobile app competition that captures these channels and estimate it using data from Google Play in Japan from 2015 to 2017. We show the effects of reducing transaction fees, lowering advertisement prices, and changing the opportunity cost of time, highlighting the importance of each channel. |
