The Determinants of Supply and Demand for Mobile Applications
AbstractSince 2008, multiple smartphone platforms have launched versions of “app stores”, marketplaces where consumers can purchase and download software applications for their smartphone. This paper provides evidence for both demand and supply of “apps” using data on the size and composition of smartphone user bases and of the apps available for competing platforms. Results from the estimation of a structural model show that the composition of users on a platform is a key determinant of app supply, and counterfactual simulations show that this effect is greater than the effects of within-platform competition and multi-homing costs in explaining the observed market outcome.
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Bibliographic InfoPaper provided by NET Institute in its series Working Papers with number 12-27.
Length: 26 pages
Date of creation: Oct 2012
Date of revision:
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Web page: http://www.NETinst.org/
network effects; telecommunications; software development; platform competition;
Find related papers by JEL classification:
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
- L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
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- Marc Rysman, 2004. "Competition Between Networks: A�Study of the Market for Yellow�Pages," Review of Economic Studies, Wiley Blackwell, vol. 71(2), pages 483-512, 04.
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