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

B-Tier
Journal: International Journal of Industrial Organization
Year: 2023
Volume: 88
Issue: C

Authors (3)

Enache, Andreea (Stockholm School of Economics) Friberg, Richard (not in RePEc) Wiklander, Magnus (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

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.

Technical Details

RePEc Handle
repec:eee:indorg:v:88:y:2023:i:c:s0167718723000279
Journal Field
Industrial Organization
Author Count
3
Added to Database
2026-01-25