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Competing for time: A study of mobile applications

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  • Yuan, Han

Abstract

Mobile applications compete for scarce user time-a mechanism I term “budget competition”-regardless of functional similarity. Complementary apps are gross substitutes when budget competition dominates functional competition. I estimate a discrete-continuous demand model to quantify the two types of competition using overlapping user data from China in 2017. Exploiting app updates to identify complementarity, I find significant substitution between functionally independent apps, demonstrating that categories are often poor proxies for competition. While budget competition can be large in absolute terms, it is often small relative to functional competition. I discuss when budget competition may play a larger role.

Suggested Citation

  • Yuan, Han, 2026. "Competing for time: A study of mobile applications," International Journal of Industrial Organization, Elsevier, vol. 105(C).
    • Handle: RePEc:eee:indorg:v:105:y:2026:i:c:s0167718725001134
    DOI: 10.1016/j.ijindorg.2025.103247
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