Demand for in-app purchases in mobile apps-A difference-in-difference approach

被引:0
|
作者
Enache, Andreea [1 ]
Friberg, Richard [1 ,3 ,4 ]
Wiklander, Magnus [2 ]
机构
[1] Stockholm Sch Econ, POB 6501, S-11383 Stockholm, Sweden
[2] MAG Interact, Drottninggatan 95A, S-11360 Stockholm, Sweden
[3] Norwegian Sch Econ, Bergen, Norway
[4] CEPR, London, England
关键词
Freemium; Demand estimation; Mobile app markets; Platforms; PRICE RIGIDITY; COMPETITION; FREEMIUM;
D O I
10.1016/j.ijindorg.2023.102945
中图分类号
F [经济];
学科分类号
02 ;
摘要
Using five "freemium" mobile app games on six European markets we examine the effect of price changes on conversion rate, number of users and viewing of rewarded videos. Our difference-in-difference estimation relies on games being available on both the Apple and Google platforms with price changes on only one platform. Our main identification comes from exogenous adjustments of Apples prices in 2021. Own-price elasticities of conversion are in the-1 to-4 range. Watching of rewarded videos decreases as in-app prices decrease with an average elasticity of around 0.5, but overall play is not affected by changes in-app prices. (c) 2023 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY license ( http://creativecommons.org/licenses/by/4.0/ )
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页数:18
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