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The Impact Of Bestseller Rank On Demand: Evidence From The App Market

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  • Octavian Carare

Abstract

This article uses daily data on the ranking by sales of the top 100 apps sold through Apple’s App Store to provide evidence of the causal impact of today’s bestseller rank information on tomorrow’s demand. The estimates indicate that the willingness to pay of consumers is about $4.50 greater for a top ranked app than for the same unranked app. The results also indicate that the effects of bestseller status on willingness to pay decline steeply with rank at the top ranks, but remain economically significant for the apps in the first half of the top 100 list.

Suggested Citation

  • Octavian Carare, 2012. "The Impact Of Bestseller Rank On Demand: Evidence From The App Market," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(3), pages 717-742, August.
    • Handle: RePEc:wly:iecrev:v:53:y:2012:i:3:p:717-742
    DOI: 10.1111/j.1468-2354.2012.00698.x
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    References listed on IDEAS

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