Platform design and innovation incentives: Evidence from the product rating system on Apple's App Store

B-Tier
Journal: International Journal of Industrial Organization
Year: 2025
Volume: 99
Issue: C

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

I study how the aggregation of product ratings on digital platforms affects the strategic behavior of third-party firms. Leveraging an unexpected and exogenous change in the rating system on Apple's App Store marketplace, I find that for nearly a decade, the manner in which the App Store aggregated customer ratings discouraged product updating by developers. Additionally, developers who were more reliant on the rating system were more responsive to the incentives created by this policy. Last, I provide suggestive evidence that the policy led to a decrease in developer effort on the platform.

Technical Details

RePEc Handle
repec:eee:indorg:v:99:y:2025:i:c:s0167718724000882
Journal Field
Industrial Organization
Author Count
1
Added to Database
2026-01-25