IDEAS home Printed from https://ideas.repec.org/p/ces/ceswps/_12378.html

Cross-Platform Entry Effects of Commission Rates: Evidence from Mobile Applications in China

Author

Listed:
  • Jiayi Hou
  • Xuan Teng
  • Xuan Wang

Abstract

This paper studies how commission rates affect app entry across platforms. We examine an increase in Android game commission rate from 30% to 50% in China in 2014 and its impact on Android and iOS app stores, separately, in a difference-in-differences framework. We find a direct negative entry effect on Android by 47%. Meanwhile, the number of new games on the iOS App Store significantly decreased by 30% due to the higher Android commission rate, implying a negative cross-platform spillover effect. Moreover, the share of high-quality new games significantly decreased by 12%, indicating that higher commission rates discourage developers’ quality provision.

Suggested Citation

  • Jiayi Hou & Xuan Teng & Xuan Wang, 2026. "Cross-Platform Entry Effects of Commission Rates: Evidence from Mobile Applications in China," CESifo Working Paper Series 12378, CESifo.
    • Handle: RePEc:ces:ceswps:_12378
    as

    Download full text from publisher

    File URL: https://www.ifo.de/DocDL/cesifo1_wp12378.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_12378. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/cesifde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.