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Three Things about Mobile App Commissions

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  • Joshua S. Gans

Abstract

Mobile app commissions paid by app developers to a monopolist device maker/app store operator are examined. Three results are demonstrated. First, unregulated app commissions are set at a level that maximises consumer surplus. Second, eliminating app commissions will lead to higher device prices. Third, requiring a menu of options for consumers as to how device makers receive subsidies from app developers constrains app commissions in a way that provides a more equal balance between consumer versus app developer interests.

Suggested Citation

  • Joshua S. Gans, 2024. "Three Things about Mobile App Commissions," NBER Working Papers 32339, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:32339
    Note: IO PR
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    More about this item

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

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