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The Determinants of Supply and Demand for Mobile Applications

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  • Michael Sinkinson

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    (The Wharton School, University of Pennsylvania)

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    Abstract

    Since 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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    File URL: http://www.netinst.org/Sinkinson_12-27.pdf
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    Bibliographic Info

    Paper provided by NET Institute in its series Working Papers with number 12-27.

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    Length: 26 pages
    Date of creation: Oct 2012
    Date of revision:
    Handle: RePEc:net:wpaper:1227

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    Web page: http://www.NETinst.org/

    Related research

    Keywords: network effects; telecommunications; software development; platform competition;

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    1. 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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