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Platform Choices: Impact on Startup Performance

Author

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  • Ajit, Tejaswi Channagiri
  • Jamison, Mark A.

Abstract

We study the impact of platform choice (iOS vs Android) for firms that build apps for smart phones. We merge app data from Sensor Tower® with financial performance data from Crunchbase®. We find that apps that begin on Android have greater average downloads per month. However, apps with the greatest average downloads per month are likely to have begun on iOS. On each platform, the categories that attracted most app-based firms had greater skewness and kurtosis in average downloads per month. When endogenizing the choice of platform using propensity-score matching, firms that prefer to launch on iOS first seem likelier than those that launch on Android first to not receive any funding at all. However, they seem to receive greater funding in USD per firm.

Suggested Citation

  • Ajit, Tejaswi Channagiri & Jamison, Mark A., 2022. "Platform Choices: Impact on Startup Performance," 31st European Regional ITS Conference, Gothenburg 2022: Reining in Digital Platforms? Challenging monopolies, promoting competition and developing regulatory regimes 265610, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itse22:265610
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    More about this item

    Keywords

    platforms; innovation; competition;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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