Abstract
Due to the nature of apps as experience goods and the vast product space, new product discovery in the mobile app market has become a very salient problem for developers and consumers. Our paper investigates developers’ best response to the platform’s recommendation, where the featured apps enjoy a reduction in search cost and an endorsement of quality for a limited period of time. Specifically, we consider three response options available to the developers: releasing a version update, increasing price, and decreasing price. We find that only the price decrease strategy has a positive effect on sales during the featuring window, while the effect of the price increase and version update strategy is not significant.
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Notes
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The section used to be named “Best New Apps.”.
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For example, the link https://www.appannie.com/apps/ios/app/anchor-lets-talk/features/#device=iphone shows the information on store featuring for the app named “Anchor - Radio by the people.”.
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Liang, C., Shi, Z.(., Raghu, T.S. (2017). When Your App is Under the Spotlight. In: Fan, M., Heikkilä, J., Li, H., Shaw, M., Zhang, H. (eds) Internetworked World. WEB 2016. Lecture Notes in Business Information Processing, vol 296. Springer, Cham. https://doi.org/10.1007/978-3-319-69644-7_11
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