Mobile application pricing
This paper examines the pricing of mobile applications when application providers can either supply consumers directly or through a mobile platform (such as a smart phone or tablet). It is demonstrated that when platform access (i.e., purchasing a device) takes place in advance of application pricing, a non-trivial unravelling problem exists that rules out selling platform access at a positive price. Consequently, all platform revenues come from sharing application provider revenues. It is demonstrated that several restrictive conditions on application providers, such as most favoured customer clauses, can allow the platform provider to earn more profits and charge a positive access price increasing the likelihood the platform is provided.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hermalin, Benjamin E. & Katz, Michael L., 2007.
"The economics of product-line restrictions with an application to the network neutrality debate,"
Information Economics and Policy,
Elsevier, vol. 19(2), pages 215-248, June.
- Hermalin, Benjamin E & Katz, Michael L, 2006. "The Economics of Product-Line Restrictions With an Application to the Network Neutrality Debate," Competition Policy Center, Working Paper Series qt81r3b7xs, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley.
- Hart, Oliver D. & Moore, John, 1990.
"Property Rights and the Nature of the Firm,"
3448675, Harvard University Department of Economics.
- Anderson, Simon P & Gans, Joshua, 2010.
"Platform Siphoning: Ad-Avoidance and Media Content,"
CEPR Discussion Papers
7729, C.E.P.R. Discussion Papers.
- Simon P. Anderson & Joshua S. Gans, 2011. "Platform Siphoning: Ad-Avoidance and Media Content," American Economic Journal: Microeconomics, American Economic Association, vol. 3(4), pages 1-34, November.
- Michael Waldman, 2010.
"Competition, Monopoly, and Aftermarkets,"
Journal of Law, Economics and Organization,
Oxford University Press, vol. 26(1), pages 54-91, April.
- Andrei Hagiu, 2009. "Two-Sided Platforms: Product Variety and Pricing Structures," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(4), pages 1011-1043, December.
- Grout, Paul A, 1984. "Investment and Wages in the Absence of Binding Contracts: A Nash Bargining Approach," Econometrica, Econometric Society, vol. 52(2), pages 449-60, March.
- Dennis W. Carlton & Joshua S. Gans & Michael Waldman, 2010.
"Why Tie a Product Consumers Do Not Use?,"
American Economic Journal: Microeconomics,
American Economic Association, vol. 2(3), pages 85-105, August.
- Gans, Joshua S., 2011. "Remedies for tying in computer applications," International Journal of Industrial Organization, Elsevier, vol. 29(5), pages 505-512, September.
When requesting a correction, please mention this item's handle: RePEc:eee:iepoli:v:24:y:2012:i:1:p:52-59. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.