Abstract
The recent years have seen a spurt of mobile developers in hypercompetitive mobile platform ecosystems. Yet, this is an unfair game where platform owners such as Apple, Google or Microsoft fence the information of their app store as top secrets. Our study, therefore, takes an important step in investigating the structure of rankings and sales revenue through 2,761 paid applications with weekly aggregated 32,109 observations to unveil a new indicator of market intelligence, earning per download. With the consideration of category effects, time effects and endogenity issues, our empirical results show that top-ranked paid apps can earn up to $7.80 per download. Our findings generate a number of insights for app developers to take actions in designing highly-ranked apps as well as manipulating prices, promotions or in-app purchases in order to unlock the full potential of their app sales. © 2014 Springer International Publishing.
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CITATION STYLE
Nguyen, H. D., Sangaralingam, K., & Poo, D. C. C. (2014). Market intelligence in hypercompetitive mobile platform ecosystems: A pricing strategy. In Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics) (Vol. 8527 LNCS, pp. 350–359). Springer Verlag. https://doi.org/10.1007/978-3-319-07293-7_34
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